Bank of America is optimistic about AMD's second-quarter performance and has raised its target price

Ahead of the second quarter earnings report, several Wall Street institutions, including Bank of America, have released positive signals for AMD, believing that its server processor demand is strong and is expected to deliver better-than-expected results.

Bank of America reiterated its buy rating on AMD and raised its target price to $620. Analysts believe that the continued expansion of AMD's EPYC server processor market share, robust cloud computing spending, and improved supply visibility will bring the company another solid quarter. Additionally, its MI455X Helios AI rack system is expected to achieve initial shipments in the third quarter. Analysts also pointed out that AMD's extensive server CPU product portfolio allows it to benefit well from emerging agent-based AI workloads.

Other institutions have also raised AMD's target price ahead of the earnings report. One institution raised its target price from $600 to $675, reiterating its buy rating, believing that the industry fundamentals remain solid and emphasizing that the release of significant AI products in the second half of 2026 is a key catalyst. Another institution had previously raised its target price by 41% to $635, also expecting AMD to exceed expectations and raise its guidance.

Analysts are generally optimistic about AMD's opportunities in the AI era, believing that its EPYC server CPU is an important player in the AI field, with the related market expected to exceed $120 billion by 2030. Another viewpoint pointed out that the rise of agent-based AI is driving strong CPU demand