“AMD Competes for a Bigger Share of the $80 Billion AI Accelerator Market – Bank of America Report”

Investing.com – Artificial intelligence is believed to be the strongest growth driver in the tech sector right now and could see many companies out there with suitable products and services see strong performance. In that sense, AMD could be on the verge of grabbing a bigger share of the artificial intelligence market, according to Bank of America (NYSE:BAC).

The bank reiterated a neutral rating on AMD stock on Monday, with a higher price target of $120 per share, suggesting an upside of around 11% from the previous close. AMD shares are up nearly 69% year-to-date.

Nvidia (NASDAQ:NVDA) could break into the AI ​​accelerator market, according to analyst Vivek Arya.

“AMD is poised to seize another big opportunity in the $80 billion AI accelerator market (by CY27E), where AMD’s share is again zero to leader Nvidia,” said said Arya.

Admittedly, the market is dominated by Nvidia and Broadcom (NASDAQ:AVGO) in first and second positions, Arya said, which could complicate AMD’s efforts to carve out a stronger position.

“Unlike the processor market where [Intel] stumbled, none of the big incumbents stumble in the AI ​​space yet, which makes it difficult for AMD to carve its own path, in our view,” Arya said.

According to InvestingPro for more data on this stock.