Bank of America raised its price target for Advanced Micro Devices, Inc. (AMD) to $720 from $620 and maintained a Buy rating. The bank expects the server CPU market to nearly triple to $211 billion by 2030, as demand for AI agents increases the need for computing infrastructure.
The forecast follows a landmark week for AMD, when its market capitalization surpassed $1 trillion for the first time. Investor confidence has grown as the company expands its role in artificial intelligence. Its strategy of offering complete AI infrastructure solutions, combining high-performance hardware with software, is gaining traction through new collaborations in PC and Edge AI.
Analysts remain divided on the stock. On the same day, Wall Street Zen downgraded AMD from Buy to Hold. The contrasting ratings reflect debate over AMD’s high valuation after its sharp rally, and whether future growth can meet market expectations.