Analyst Bullish on AMD Despite Nvidia-Intel Partnership
Advanced Micro Devices (AMD) shares dipped slightly on Friday, yet Bank of America's top analyst Vivek Arya reaffirmed a Buy rating with a $200 price target—implying a 27% upside. The Optimism stems from AMD's AI growth and CPU market gains, outweighing cyclical weaknesses in embedded and console segments.
Arya sees Nvidia's $5 billion investment in Intel as a potential boon for AMD, arguing it could strengthen the x86 architecture both companies rely on. The long gestation period for the Intel-Nvidia collaboration gives AMD runway to keep chipping away at Intel's dominance.
Year-to-date, AMD stock remains a standout performer with 30% gains despite Friday's 0.3% slip. The semiconductor play continues to ride secular trends in AI and data center demand.
