On September 24, Bank of America (NYSE: BAC) updated its rating for Advanced Micro Devices (NASDAQ: AMD) shares, indicating a more gradual increase in their value in the future. Analyst Vivek Arya reaffirmed his 'Buy' recommendation, raising the previous price target from $620 to $720, which corresponds to an expected growth of 14.42% from the current $629.26.
According to Arya, the demand for computing power for 'agent' artificial intelligence and the processor infrastructure deal with Anthropic and Akamai will significantly contribute to AMD's growth. He reported that the bank's models show that the total addressable market for processors will grow from $61 billion in 2026 to $211 billion in 2030, an increase of 245.90%. Against the backdrop of positive forecasts, AMD shares are generally considered 'Absolutely Buyable,' with 30 'Buy' recommendations, 6 – 'Hold' and no 'Sell' recommendations, according to data obtained by Finbold from TipRanks as of September 25. The average price target for AMD shares for the next year is set at $648.07, which is 2.99% higher than the last price.
It is worth noting that since the beginning of 2026, AMD shares have shown a growth of 181.59%. From January 2 to September 14, the share price increased by 120.79% – from $223.37 to $493.41, and then by another 27.56% to $629.26 at Thursday's close and 29.62% to $639.56 at the time of publication. This surge also helped AMD surpass the $1 trillion market capitalization mark for the first time in its history. Ultimately, the update of the company's stock price forecast reflects analysts' confidence in its potential, despite the slowdown in growth rates in the future.