Wall Street Splits on AMD: BofA Hikes Price Target to $500, Daiwa Downgrades on Valuation

"Bank of America's price target raise is anchored in a sector-wide $1.7 trillion AI data center total addressable market upgrade by 2030, which expands Advanced Micro Devices' addressable opportunity in server CPUs and AI accelerators. Arya sees continued share gains for EPYC processors and the MI accelerator family fueling that thesis."

"Daiwa's downgrade is purely valuation-driven. The firm called Advanced Micro Devices' Q1 FY2026 results and Q2 FY2026 outlook "very good" but flagged that AMD shares are up 150% over the past 60 days, with multiple recent target hikes from KeyBanc, Bernstein, and Mizuho already in the mix."

"The split captures the central tension in AMD stock right now: a powerful AI fundamental story colliding with a parabolic price move. Notably, both firms arrived at the same destination. The disagreement centers on path and timing rather than the eventual destination for AMD shares."

"The Q1 FY2026 report delivered revenue of $10.253 billion, up 38% year over year (YoY), with Data Center revenue of $5.775 billion, up 57% YoY. Non-GAAP EPS of $1.37 beat the $1.29 consensus, and Q2 guidance points to revenue of about $11.2 billion. Advanced Micro Devices CEO Lisa Su stated, "Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations.""

Two major firms issued opposing ratings for AMD while both set the same $500 price target. Bank of America raised its target to $500 from $450 and kept a Buy rating, citing an upgraded AI data center total addressable market to $1.7 trillion by 2030 and expecting continued share gains in EPYC server CPUs and MI accelerators. Daiwa downgraded AMD to Outperform from Buy while raising its target to $500 from $250, citing valuation pressure after a parabolic run-up. AMD reported Q1 FY2026 revenue of $10.253 billion, up 38% year over year, with Data Center revenue of $5.775 billion, up 57% year over year, and non-GAAP EPS of $1.37. Q2 guidance pointed to revenue around $11.2 billion, supported by strengthening customer engagement around MI450 Series and Helios.

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