Bank of America has raised its AMD price target from $620 to $720, but the more interesting part of the call is what sits behind it: a much larger market for server CPUs as AI agents demand m
Bank of America has raised its AMD price target from $620 to $720, but the more interesting part of the call is what sits behind it: a much larger market for server CPUs as AI agents demand more general-purpose computing.
BofA kept its Buy rating and now models the server CPU market expanding from roughly $61 billion in 2026 to $211 billion by 2030. The firm also raised its 2027 and 2028 AMD estimates by 2% and 3%, respectively.
That thesis received support this week when Akamai announced an $11.6 billion agreement with Anthropic covering seven years of infrastructure for growing CPU workloads. The agreement could eventually expand by another $9 billion, taking the potential commitment to about $20 billion.
The connection does not mean AMD directly won the Anthropic contract. Instead, it strengthens the broader argument that the next phase of AI spending may require far more CPUs alongside GPUs.
AMD’s AI Story Is Expanding Beyond GPUsFor much of the AI boom, AMD has been judged primarily on whether its Instinct accelerators can take share from Nvidia.
That remains important, but server processors offer AMD another route to AI growth.
Agentic systems do more than train or run neural networks. They also execute software, access databases, manage workflows and coordinate multiple services: jobs where CPUs remain central. Our CPU vs. GPU vs. NPU explainer shows why increasingly complex AI systems require multiple processor types rather than accelerators alone.
AMD is already seeing that demand in its financial results. Its latest earnings release showed record second-quarter revenue of $11.5 billion, up 50% year over year, with Data Center revenue more than doubling. Management also guided for around $13 billion of third-quarter revenue.
<iframe src=”https://widgets.coincodex.com/w/c71f81f6-5b0a-484d-8a3c-de64f29d7709?site=coinpaper&mode=light” width=”100%” height=”420” frameborder=”0” referrerpolicy=”no-referrer-when-downgrade” style=”border:0;background:transparent;border-radius:0px;”></iframe>A $720 Target Comes After a Historic AMD RallyThe higher target also arrives after an extraordinary run.
AMD recently crossed $1 trillion in market value for the first time as the stock rallied alongside Intel, Arm and other AI-linked semiconductor names. Coinpaper’s coverage of the $1 trillion AMD milestone showed how investors are increasingly treating AI infrastructure as a broader semiconductor cycle rather than an Nvidia-only story.
AMD shares have risen roughly 185% in 2026, meaning expectations are already high.
At a recent price around $635, BofA’s $720 target implies roughly another 13% of potential upside. Reaching it would likely require AMD to continue expanding Data Center revenue while converting the projected CPU boom into real EPYC sales.
