BofA Maintains Buy on AMD (AMD), Sees Upside from Market Share Expansion

Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the best data center stocks to buy now. On August 13, Bank of America analyst Vivek Arya reiterated a Buy rating on Advanced Micro Devices with an unchanged price target of $200. Reviewing the second-quarter CPU market, Arya highlighted AMD’s continued market share gains at Intel’s expense. His analysis was based on recent Market Research data.

BofA Maintains Buy on AMD (AMD), Sees Upside from Market Share Expansion

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Advanced Micro Devices Inc.’s (NASDAQ:AMD) CPU revenue share rose by 120 basis points sequentially to 29.5% in Q2, building on a 300-basis-point gain through 2024. Looking ahead, Arya expects average selling price (ASP) growth to be the primary driver of further market share expansion. He forecasts AMD’s value share rising to 30-31% by 2026/2027, up from 21% in 2023 and 24% in 2024.

With Advanced Micro Devices Inc. (NASDAQ:AMD) stock up close to 50% year-to-date, Arya sees further upside supported by PC and server strength, as well as growth in accelerators. AMD was also added to BofA’s “US 1 List”, which is the bank’s selection of top investment ideas.

Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.

While we acknowledge the potential of AMD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMD and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.