Advanced Micro Devices Positioning Itself as Credible Alternative Merchant AI GPU Supplier, BofA Says

MT Newswires Live00:03

Advanced Micro Devices (AMD) is positioning itself as a credible alternative merchant AI graphics processing unit supplier to Nvidia (NVDA), BofA Securities said in a Tuesday research note.

BofA said it expects the company's server CPU business to continue growing on robust product execution, share gains compared with Intel (INTC), and growing demand for AI inference head node.

The company is likely to maintain stable gross margins through 2026 despite rising AI mix as server CPUs and embedded record gains, the firm said.

BofA said it raised its 2026 and 2027 EPS forecast to $6.49 and $10.30, respectively, from $6.30 and $9.48 earlier.

The company has yet to showcase rack-scale execution in a large AI cluster, and growing OpenAI reliance remains a major risk, according to the note.

The brokerage said it reiterated its buy rating on the stock and boosted its price target to $280 per share from $260.

Price: 207.08, Change: -35.04, Percent Change: -14.47

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