AMD
The market had a mood swing
AMD got whacked 7% on Wednesday, and not because the company suddenly forgot how to make chips. The culprit was more of a jealous ex situation: Elon Musk said SpaceX is sticking with Nvidia GPUs because they’re “the best,” which gave NVDA another bragging point and left AMD investors doing the side-eye.
BofA’s message: breathe
Bank of America’s Vivek Arya basically told clients to stop panic-refreshing the tape and look farther out. AMD’s quarterly numbers were still pretty spicy — revenue came in at $11.54 billion, data-center sales jumped 107% to $6.72 billion, and third-quarter revenue guidance landed around $13 billion, a touch above Wall Street’s bar.
But the bank thinks the real plotline is AMD’s Helios rack-scale platform, which it expects to ramp in late 2026 and then really hit its stride in 2027. In other words: this isn’t the season finale. It’s the pilot episode.
Why investors care
BofA kept its Buy rating and $620 price target, and the longer-term math is where things get interesting:
- 2026 EPS estimate: $7.50 to $7.62
- 2027 EPS estimate: $13.26 to $15.88
- 2028 EPS estimate: $17.84 to $23.88
The bank’s view is that AMD doesn’t need to knock Nvidia out of the ring. It just needs to win more share while the AI market keeps ballooning into something absurdly large. If that happens, today’s tantrum could look pretty small in hindsight.
Big picture: The stock got hit by the headline, but BofA is betting the real AMD story is still being written in 2027, not 2026.