AMD Target Raised to $200 on AI Gains, CPU Momentum

Advanced Micro Devices (AMD, Financials) won fresh support on Wall Street after Bank of America analyst Vivek Arya reiterated a Buy rating and set a $200 price target, pointing to continued growth in artificial intelligence chips and server CPUs. The target represents about 27% upside from current levels.

Arya said AMD's share gains in AI and data-center markets outweigh slower trends in cyclical businesses such as consoles and embedded chips. The company's accelerated roadmap includes the MI325X entering mass production this year and the MI350 coming later in 2025, followed by a new AI server platform in 2026.

The call comes as investors digest Nvidia's $5 billion investment and product pact with Intel, a move seen as strengthening competition in data-center and PC processors. Arya argued the deal could actually benefit AMD, since both companies rely on the x86 ecosystem that AMD also licenses, making the market more robust overall.

AMD stock is up more than 30% this year, though it has been volatile, trading between $76 and $187 over the past 12 months. Analysts hold a Moderate Buy consensus on the stock, with an average target of $188.