Bank of America Raises AMD Price Target to $280
BofA Securities analyst Vivek Arya raised the price target on AMD (NASDAQ: AMD) to $280.00 (from $260.00) while maintaining a Buy rating.
“We continue to like AMD as it serves a critical role as a credible alternative merchant AI GPU supplier to NVDA, with consistently proven execution ability to set and beat expectations.
The stock also continues to remain relatively under-owned (just 2 of 10 investors) and underweighted (0.16x relative weightage to SPX) in US large-cap portfolios, per data from the BofA Strategy team.
AMD has yet to prove rack-scale execution in a large AI cluster, and growing OpenAI reliance remains key risks, but we think the rising tide across CPU, GPU, embedded can continue to keep estimates on a steady upward path.
Following the Q4 earnings call, we tweak up CY26/27E pf-EPS by 3%/9% to $6.49/$10.30, while raising our PO to $280 from $260 on unchanged 27x CY27E PE, in-line with historical 13x-58x range or 27x median.
Our choice of PE compares well to potential for 50%+ annual EPS growth (~0.6x PEG).”
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