This Nvidia competitor just received a Wall Street price increase

Core Viewpoint - Advanced Micro Devices (AMD) has received a positive endorsement from BofA Securities, maintaining a 'Buy' rating and raising its price target from $175 to $200, indicating a potential increase of about 15% from its last closing price of $173 [1][4]. Group 1: Price Target and Stock Performance - The new price target of $200 represents a 15% increase from AMD's last closing price of $173 [1]. - AMD's stock has rallied 11% over the past week and ended the previous session up over 4% [1]. Group 2: Earnings Expectations and Revenue Projections - BofA expects AMD to exceed consensus in both Q2 and Q3 earnings, forecasting revenues of $7.5 billion and $8.5 billion, respectively [7]. - For the full year 2025, BofA projects AMD's revenue to reach $33 billion and earnings per share of $4.10, both surpassing current Wall Street estimates [7]. Group 3: Market Opportunities and Drivers - Potential resumption of AI chip shipments to China in the second half of the year could contribute up to $1 billion in sales in 2025 and as much as $2 billion by 2026 [4]. - AMD is benefiting from stronger-than-expected pricing for its MI355X chips, with units selling for over $20,000, exceeding the consensus estimate of $17,000 [5]. - Strong demand for cloud-related GPUs, improving year-over-year comparisons in the PC segment, and steady enterprise interest from companies like Hewlett Packard Enterprise and Texas Instruments are also positive drivers [5]. Group 4: Market Share Projections - AMD is projected to capture more than 30% of the global CPU market by 2026, up from just under 20% in 2023 [8]. - Its share of the competitive AI GPU space could grow to 4% to 5%, supported by strategic shifts and manufacturing uncertainties at Intel [8]. Group 5: Analyst Ratings - Wall Street remains bullish on AMD stock, with Goldman Sachs reiterating a 'Buy' rating with a $140 target, while HSBC upgraded AMD to 'Buy' with a $200 target [8][9]. - Citi maintained a 'Hold' but raised its target from $120 to $145, indicating improved expectations [9].