Bank of America Global Research raised its price target on Advanced Micro Devices to $560 from $500, implying roughly 16% upside from recent levels. The revision reflects confidence in AMD's AI chip strategy as the company ramps production of its 2-nanometer Venice processors. AMD shares have gained 116% year to date.
Bank of America Global Research raised its price target on Advanced Micro Devices to $560 from $500, citing AI chip growth prospects.
The bank's analysts pointed to AMD's production ramp of its next-generation 2-nanometer Venice processors and stronger-than-expected AI infrastructure demand as key drivers for the revision, according to the research note. The new chips are being built using an advanced manufacturing process from Taiwan Semiconductor Manufacturing Co., AMD's longtime fabrication partner.
The new $560 target, up from $500, implies roughly 16% upside from AMD's recent trading levels around $483. AMD shares have gained 116% since the start of the year but remain 11% below their 52-week high of $542.52 set in June 2026. A $1,000 investment in AMD five years ago would now be worth about $5,938, reflecting the stock's long-term growth trajectory.
The upgrade comes as AMD gains server CPU market share while Intel's share declined in the first quarter of 2026, according to industry reports. AMD has also announced plans to invest more than $10 billion in Taiwan's AI supply chain, deepening its partnership with TSMC and securing capacity for future chip production.
The price target revision follows a period of volatility for AMD shares, which fell 6.5% in a single session earlier this month after Broadcom's guidance miss raised concerns about the pace of hyperscaler AI chip spending. The broader semiconductor sector has been under pressure as a stronger-than-expected jobs report reduced expectations for near-term rate cuts, with the CME FedWatch tool now pricing in rate hike risk by year end. South Korea's Kospi fell 5.5% during the selloff, with Samsung down 6.4% and SK Hynix losing nearly 10%, while European chipmakers ASML and Infineon also declined.
The upgrade indicates Bank of America views AMD's AI opportunity as intact despite near-term sector headwinds. Investors will watch for AMD's next earnings report for updated data-center revenue figures and guidance on the Venice CPU ramp, which CEO Lisa Su has described as seeing stronger-than-expected demand from AI infrastructure customers.
This article is for informational purposes only and does not constitute investment advice.
