Bank of America Raises AMD (AMD) Price Target to $300, Citing 11/11 as Next Major Catalyst

Core Viewpoint - Advanced Micro Devices, Inc. (AMD) is highlighted as a significant player in the AI sector, with a recent price target increase from Bank of America to $300 per share, indicating strong growth potential in various markets [1][2]. Group 1: Market Opportunity - AMD operates in a multi-hundred billion dollar addressable market, including PC, server, high-end gaming, and deep-learning sectors, where it currently holds less than 30% market share [1]. - The company is expected to benefit from the deployment of its MI450 Series 'Helios' racks, which are set to launch in the second half of 2026, with support from major clients like Oracle, Meta, and OpenAI [2]. Group 2: Financial Projections - Analysts have adjusted their estimates, assuming a 50% fall-through from a deal with OpenAI, projecting a deployment of 6 GW over four years, which has led to increased sales and EPS estimates [2]. - The new price target of $300 is based on a 33x CY27E PE ratio, which remains within the historical range of 14x–55x [2]. Group 3: Upcoming Catalysts - The next significant event for AMD is the Analyst Day scheduled for November 11, which is anticipated to be a major catalyst for the stock [2]. - There is a noted low ownership of AMD among active fund managers, with only about 20% of funds holding the stock as of August, indicating potential for increased interest [2].