Bank of America just gave AMD a massive upgrade — here’s why the stock could soar 35%

Bank of America makes boldest AMD call yet amid booming AI chip demand and China green light- Advanced Micro Devices (AMD) is back in the spotlight—and this time, it’s not just about its cutting-edge chips. Bank of America’s boldest price target yet for AMD stock signals growing confidence in the company’s future, especially after major policy changes unlocked massive revenue potential in China.

AMD’s AI ambitions are clearly paying off. With strong momentum in data centers and the green light to re-enter the Chinese market, analysts are now calling AMD a serious contender against Nvidia. Here's a full breakdown of what’s driving this bold Wall Street bet.

Why did Bank of America hike AMD’s stock price target to $175?

On July 16, Bank of America analyst Vivek Arya raised his AMD stock price target from $130 to $175, a 35% jump. This is the most aggressive call made on AMD this year by a major Wall Street bank.


Arya’s call wasn’t just based on AMD’s strong fundamentals. It came after a crucial policy shift by the U.S. government, which now allows AMD and rival Nvidia to resume shipments of advanced AI accelerators to Chinese data centers. This unlocks a revenue stream that had been frozen under previous export controls.

Bank of America estimates this could add $500 million to $1 billion in revenue for AMD over the next two quarters alone—making the raised target more than just optimism. It’s a calculated bet on a major growth rebound.

Specifically, analysts expect AMD to generate $400–600 million per quarter in revenue from its data-center GPUs during the second half of 2025. That could add an extra $1 billion to this year’s total sales and up to $2 billion in 2026. And unlike some other chipmakers, AMD’s MI300X GPUs are fetching premium prices — in the $20,000 to $25,000 range — giving a nice lift to profit margins.

Beyond GPUs, AMD is gaining ground in other key areas too:

• Taking market share from Intel in server CPUs
  
  
• Recovering embedded chip sales
  
  
• Launching its next-gen MI400 GPU systems in 2026
  
  

Altogether, Bank of America thinks AMD is “firing on all cylinders” — and that’s why they’re betting big on its future.

How does this compare to other analyst predictions?

BofA’s $175 target isn’t even the most aggressive on Wall Street. HSBC recently upgraded AMD to a “Buy” with a $200 price target — implying roughly 30%–35% upside from current levels. That call was based on AMD’s ability to price its chips above expectations and the early traction of its new MI350 series.

Other analysts remain optimistic too:

• TipRanks shows a “Moderate Buy” consensus with average targets near $150
  
  
• MarketWatch reports several firms now eyeing AMD’s potential in AI acceleration as a major long-term growth driver
  
  
• Some bulls see $215 as a realistic stretch goal, which would represent a 35%+ jump from here.

What’s the current stock trend for AMD?

AMD has had a strong run in 2025. The stock is up about 33% year-to-date, trading near $157–$160 — one of its highest levels since late 2021.

Here’s a quick technical snapshot:

• Broke out of a key resistance zone in early July
  
  
• 50-day moving average crossed above the 200-day (a bullish “golden cross”)
  
  
• Momentum remains strong, though RSI suggests the stock is approaching overbought territory
  
  
• Support levels: $148 and $123
  
  
• Next major resistance: $187 and potentially $215
  
  

The technicals are confirming what the fundamentals are saying: AMD is in an uptrend, and buyers are firmly in control.

How are AMD’s data center and AI chip sales performing?

AMD started the year behind Nvidia in the AI chip race, but it’s now catching up—fast. In Q1 2025, AMD’s data center revenue surged 57% year-over-year to $3.7 billion, now making up almost half of its total sales.

The real stars of the show? AMD’s EPYC CPUs and Instinct MI300 series GPUs, which are now widely used in large-scale AI applications. The MI300 chips have earned positive reviews not just for performance, but for delivering better value per dollar compared to Nvidia’s alternatives, according to some buyers.

To push further, AMD recently unveiled its MI350 Series and a new rack-level AI platform called Helios. AMD says MI350 offers 40% more AI performance per dollar than the previous model—a big step in a market where cost-efficiency matters.

What role does China’s AI market play in AMD’s growth?

China is one of the largest buyers of AI chips in the world. According to reports, Chinese cloud companies spend nearly 20% of all global AI training budgets. Losing access to that market in recent years was a significant setback for AMD.

Now that the U.S. has eased restrictions, AMD can start selling again to top Chinese customers—potentially opening up multi-quarter sales growth in Asia. With the MI300 series and upcoming MI400 GPUs, AMD is now well-positioned to serve that high-demand market, competing not just with Nvidia but also Chinese tech giants like Huawei.

This access to China could become one of the biggest revenue growth drivers in AMD’s upcoming quarters.

Who’s already adopting AMD’s AI hardware?

Several big names are already integrating AMD’s chips into their infrastructure.

Meta (formerly Facebook) has started using AMD’s MI300 GPUs to power its internal AI models. It’s also planning to test the newer MI350 series soon.

Meanwhile, AI cloud startup TensorWave has built the largest AMD GPU deployment in North America—an 8,192-chip system delivering 21 exaFLOPS of performance.

Another key advantage? AMD’s commitment to open-source tools like ROCm, which appeals to cloud providers and developers looking for flexible AI development environments. This strategy helps AMD win over a part of the market that may feel locked into proprietary ecosystems from Nvidia.

Can AMD maintain its momentum in the face of global headwinds?

Despite the strong growth signals, AMD isn’t in the clear just yet. The company still faces challenges in global supply chains, geopolitical uncertainties, and fierce competition from Nvidia, Intel, and Chinese semiconductor firms.

Still, if AMD successfully executes its next-gen product rollout and capitalizes on its reopened sales pipeline in China, it could be heading toward a long-term growth cycle.

Bank of America’s $45-per-share price hike is a strong vote of confidence, suggesting AMD’s value may still be underestimated by the market. Whether that call pays off depends on how well AMD can scale its AI hardware business in the quarters ahead.

AMD’s transformation from a perceived underdog to a rising force in AI infrastructure is happening faster than many expected. With strong product traction, reentry into the Chinese market, and Wall Street backing, AMD’s story in 2025 is shaping up to be one of the most important in the tech sector.

Investors are now watching closely to see if AMD can deliver on these high expectations—and whether its chips can help lead the next wave of global AI innovation.

FAQs:

Q: Why did Bank of America raise AMD's stock target to $175?
A: Because of strong AI chip growth and the return of China exports.

Q: How is AMD competing in the AI chip market now?
A: By launching MI300 and MI350 chips and gaining big tech support.