Much of AMD’s GPU upside priced in at current valuation, says BofA

BofA analyst Vivek Arya says AMD “again outlined a strong vision of high-performance computing and AI across its data center and client portfolio” at yesterday’s “AMD AI” event, with virtual machines for MI300X available today at Microsoft’s (MSFT) Azure and other cloud hyperscalers and enterprise OEMs – including Meta (META), Oracle (ORCL), Dell (DELL) and Supermicro (SMCI) – promising adoption of AMD’s latest accelerator. While the MI300X is more powerful in select metrics than Nvidia’s (NVDA) H100, the firm notes that Nvidia’s recently updated H200 “generally closes the gap.” The firm, which highlights AMD’s implied accelerator market share remains small at less than 3% compared to Nvidia’s roughly 80% in calendar 2024, believes much of the GPU upside has been priced in at the current valuation and maintains a Neutral rating and $135 price target on AMD shares.