October 10,2024

Bank of America analysts have maintained buy coverage on AMD for its “Advancing AI” event
scheduled for October 10. They think this event may bring AMD stock up, similar to the
previous AI event held in December 2022 that immediately led to stock growth of up to 80%
within 3 months.
The forthcoming event may bring the latest regarding the firm’s AI and server CPU plans, which
may help boost the stock, concerned only 9% YTD and lagging the pace of the Philadelphia
Semiconductor Index, 22%.
Bank of America also emphasized that AMD has capabilities to increase its market share in the
chipset competition and underlined the companies’ capability to compete for AI accelerator
market. Industry analysts expected this figure to rise to $5.1bn in 2024, and possibly double to
$10bn in 2025.
However, AMD is competing with NVIDIA which currently dominates more than 80% of total
AI accelerator market. Nevertheless, if AMD is able to capture a 10% + Market share in AI by
the year 2026, then it can post astonishing figures with sales going up to $30 billion, and EPS
touching $8- $9.
According to Bank of America, the positive traffic that AMD will focus more on its strengthened
stand by recent acquisitions, open-source software, and enhanced networking solution. But they
also highlighted issues affecting the sector including Intel threat, weaker demand on PCs and
hard time on the pricing of the AI hardware.
While AMD will experience these challenges, possibly in the near-term future it has to expand
the company’s market share in AI for constant stock growth and effective business development.