AMD’s stock is worth a fresh look, Bank of America says

The Ratings Game

AMD is seen as an also-ran in the market for AI chips. But a BofA analyst thinks the company can still capture meaningful opportunity there.

Published: May 21, 2025 at 5:40 p.m. ET

Shares of Advanced Micro Devices Inc. are down 7% so far in 2025 and off 32% over the past year. But analysts at Bank of America say the company has “sufficient room” in the booming market for artificial-intelligence chips.

Nvidia Corp. NVDA is expected to command more than 80% of the market for AI accelerators, or hardware that helps run AI applications, according to Bank of America research analyst Vivek Arya. Custom chips from tech companies could garner a further 10% to 15% in market share, by his estimates. Still, Arya is upbeat about AMD AMD and thinks the company could see “a credible 3%-4% share” of that market. The total addressable market for AI accelerators could reach more than $400 billion, Arya said in a Wednesday note to clients.