BofA cuts AMD stock price target to $650 on sector multiple contraction
BofA Securities reduced its price target for AMD (NASDAQ:AMD) to $650 from $720, citing sector multiple contraction, while maintaining a Buy rating. AMD's stock has fallen 16% in the past week. The company reported strong Q3 earnings, with revenue of $13.4B and EPS of $2.09, beating estimates. AMD raised its 2027 server CPU sales growth outlook to 100% YoY and expects revenue growth above 80% YoY for 2027.
How this was made
The 30-second read
Why it matters
The price target reduction reflects a more conservative valuation despite robust guidance.
Market read
Analyst target cut provides a near‑term sell signal for AMD amid sector valuation concerns.
What to watch
Rapid server CPU sales growth and high datacenter margins could offset sector multiple pressure.
Background
BofA updated its 2027/2028 EPS forecasts and highlighted AMD's strong server CPU outlook.
Ticker impact
BofA Securities lowered AMD's price target to $650, citing sector multiple contraction and updated 2027 guidance.
likely pressure as the market prices in the lower target.
Analyst downgrade with specific price target provides a clear actionable signal.
Market effects
Sector multiple contraction may affect other semiconductor peers.
US semiconductor sector could see modest pullback.
Limited to tech‑heavy markets; no broad macro impact.
Counterpoint
Some investors may view the target cut as an overreaction given strong datacenter growth.
Key entities
- CompanyAdvanced Micro Devices Inc.
US-listed semiconductor manufacturer (NASDAQ:AMD).
- AnalystBofA Securities
Bank of America research unit providing the price target revision.
