Advanced Micro Devices (AMD) is poised for a "healthy" Q2 beat and raise, mainly driven by demand for its central processing units or CPUs and graphics processing units or GPUs, BofA Securities said in a Monday note.
"Overall, we expect upside to Q2/Q3 result/guide," said BofA Securities, noting pricing headwinds from AMD's MI355X GPUs, strong demand for AI/GPU, and potential resumption of China AI shipments in H2, among other drivers.
Should China shipments resume in August, AMD could see up to a $1 billion addition to its 2025 GPU forecast, said the investment firm. In addition, the company's CPU market share could exceed 30% by 2026, from less than 20% in 2023, according to BofA Securities.
AMD is set to release its Q2 results on Aug. 5.
BofA Securities raised its price target on AMD to $200, from $175, while reiterating its buy rating.
Shares of Advanced Micro Devices were up more than 4% in recent Tuesday trading.
Price: 180.73, Change: +7.07, Percent Change: +4.07
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.