The bank now views AMD as a full-stack AI systems competitor, not just a GPU vendor, expanding its market opportunity.
Bank of America raised its price target for AMD to $620 from $560, citing the company’s shift to a full-stack AI systems supplier. AMD shares closed at $554.23 on July 24, with the new target reflecting a 47x multiple on 2027 estimated earnings per share.
The revision follows AMD’s recent AI pitch, which the bank described as its most ambitious to date. Analysts now evaluate AMD as a systems-level competitor, integrating hardware and software, rather than just a chip vendor. The new target sits within AMD’s historical 13x-to-58x earnings multiple range.
The note highlights AMD’s transition from a merchant GPU vendor to a rack-scale accelerator supplier, signaling broader market positioning in AI infrastructure.