AMD Stock Gets A Price Target Hike With Anthropic-Akamai Deal Strengthening CPU Case In Agentic AI, BofA Says
BofA raised its price target for AMD to $720, citing the Anthropic-Akamai deal and expecting server CPU market growth to $211B by 2030. AMD estimates for 2027 and 2028 were increased by 2% and 3%, respectively. AMD shares hit a record high above $629, and its market cap crossed $1 trillion. Akamai's stock jumped nearly 20% after its $11.6B AI cloud deal with Anthropic.
How this was made
The 30-second read
Why it matters
Both companies see immediate price moves, reflecting heightened investor optimism around AI infrastructure.
Market read
Analyst upgrade and large AI contract drive short‑term bullishness in semiconductor and cloud sectors.
What to watch
Potential supply‑chain constraints for CPUs could limit upside.
Background
Bank of America issued a fresh analyst upgrade for AMD and highlighted a major AI cloud contract for Akamai.
Ticker impact
BofA raised AMD's price target to $720 and upgraded estimates for 2027/2028, prompting a 1.8% pre‑market gain.
Potential further upside if price approaches new target.
Target increase of $100 is sizable and aligns with bullish sentiment.
Akamai stock jumped ~20% pre‑market after securing an $11.6 B AI cloud deal with Anthropic.
Likely continued momentum as deal details are digested.
Large contract size and immediate price reaction support further gains.
Market effects
Boosts outlook for server CPU and AI‑infrastructure providers.
Positive for US tech sector, especially semiconductor and cloud infrastructure stocks.
Reinforces global AI investment narrative.
Counterpoint
Target hikes may be premature if AI demand softens; watch for earnings guidance.
Key entities
- analystBank of America
Raised AMD price target and estimates.
- companyAnthropic
Partnered with Akamai on AI cloud deal.
