- Bank of America raised its price target for AMD stock by 20%, setting it at $300 per share.
- AMD holds less than 30% market value share in several large markets, including PC, server, gaming, and AI.
- AMD’s MI450 Series ‘Helios’ racks are expected to launch in the second half of 2026 with support from companies like Oracle, Meta, and OpenAI.
- OpenAI agreed to deploy 6 gigawatts of AMD GPUs and acquire up to 160 million shares, about 10% of AMD.
- AMD shares dropped 1.05% after leaks about upcoming Ryzen CPUs but remain up over 90% year-to-date.
On October 17, Bank of America increased its price target for Advanced Micro Devices (AMD) stock to $300 per share, up from $250, and maintained a “Buy” rating on the stock. The analysts cited growth opportunities across multiple sectors, including PCs, servers, high-end gaming, and Artificial Intelligence.
The new price target reflects a 20% increase based on an unchanged price-to-earnings ratio of 33 times estimated earnings in calendar year 2027, which remains within the company’s historical range of 14 to 55 times. The next significant event identified by the analysts is AMD’s upcoming Analyst Day in New York City on November 11.
Bank of America highlighted the planned launch of AMD’s MI450 Series ‘Helios’ racks in the second half of 2026. These server racks are designed for AI and high-performance computing workloads, with commitments from major technology companies including Oracle, Meta, and OpenAI supporting their deployment and ramp-up.
Earlier this month, AMD secured a deal with OpenAI, the developer of ChatGPT, to supply 6 gigawatts of graphics processing units (GPUs) over the coming years. In return, OpenAI will acquire up to 160 million shares in AMD, representing roughly 10% ownership of the company.
Despite this positive momentum, AMD’s stock fell 1.05% on Tuesday after leaks from chi11eddog revealed details about new Ryzen 7 and Ryzen 9 CPUs in development. Nonetheless, the stock remains strong with a year-to-date gain of over 90% and a 56.12% increase over the past 12 months.
For more information, see the Bank of America note and related developments on AMD.
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