SKN | Bank of America Raises AMD Target to $720 as AI Expands the Server CPU Opportunity

Key Takeaways:

• Bank of America raised its AMD price target from $620 to $720 while maintaining its Buy rating, placing greater emphasis on server CPU demand.
• Analyst Vivek Arya argues that the growth of agentic AI could increase demand across the computing architecture, with CPUs and GPUs developing as complementary components.
• Bank of America estimates that the server CPU market could expand from $61 billion in 2026 to $211 billion by 2030.
• The bank views Anthropic’s $11.6 billion Akamai agreement as evidence of the substantial computing infrastructure required to support expanding AI workloads.

Bank of America Repositions the AMD Thesis Around CPUs

Bank of America has raised its price target for AMD from $620 to $720, while maintaining its Buy rating. The revised view places greater emphasis on the company’s server CPU opportunity as artificial intelligence workloads become increasingly complex and data-intensive.

Analyst Vivek Arya argues that the development of agentic AI could expand demand across the broader computing architecture. AI agents require infrastructure capable of coordinating tasks, executing software, processing data and interacting with multiple applications. From Bank of America’s perspective, this increases the importance of CPUs alongside GPUs rather than making traditional server processors secondary to accelerated computing.

Why Bank of America Is Watching Anthropic’s Akamai Deal

The bank’s revised thesis comes as large AI developers commit substantial capital to supporting infrastructure. Anthropic’s $11.6 billion, seven-year agreement with Akamai is particularly relevant to Bank of America’s analysis because the arrangement is designed to support significant CPU-based computing requirements.

For the bank, the agreement illustrates how AI expansion can create demand beyond specialized accelerators. As AI systems become more sophisticated, supporting workloads require additional processing capacity, cloud infrastructure and data-center resources. This provides a broader foundation for Bank of America’s assessment of AMD’s server business.

Bank of America Raises Its Server CPU Market Outlook

A central element of the revised analysis is Bank of America’s estimate that the server CPU total addressable market could grow from $61 billion in 2026 to $211 billion by 2030. The projection strengthens the potential importance of AMD’s EPYC server processor business within the bank’s valuation framework.

Bank of America has also increased its AMD earnings estimates, with the firm’s 2027 and 2028 projections rising by approximately 2% and 3%, respectively. The changes indicate that the bank’s higher target is being supported by adjustments to its operating assumptions, rather than solely by applying a higher valuation multiple.

What the Bank’s Revision Means for AMD’s Position

The significance of Bank of America’s call is its interpretation of how AI infrastructure develops. The bank’s analysis increasingly treats CPUs and GPUs as complementary layers of the AI computing stack. That distinction broadens the potential opportunity for AMD beyond accelerator demand alone.

For sophisticated investors monitoring the semiconductor cycle, Bank of America’s revised AMD thesis provides a specific institutional signal: the next phase of AI infrastructure spending may depend increasingly on the supporting compute architecture required to operate increasingly autonomous AI workloads. The durability of that spending will remain important to AMD’s earnings trajectory and to the assumptions underpinning the bank’s $720 target.

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