AMD could be on the verge of grabbing a larger share of the artificial intelligence market, according to Bank of America. The firm reiterated a neutral rating on AMD stock Monday, with a higher $120 per share price target, suggesting upside of about 11% from the previous close. Shares of AMD have added nearly 69% year to date. AMD YTD mountain AMD stock in 2023 The company could be locking its sight on Nvidia to break into the AI accelerator market, according to analyst Vivek Arya. "AMD is on the verge of another large opportunity in the $80bn AI accelerator market (by CY27E) where AMD's share is again effectively zero against leader Nvidia," Arya said. The market is dominated by Nvidia and Broadcom in the first and second position, Arya said, which could complicate AMD's efforts to carve out a stronger position. "Unlike the CPU market where [Intel] stumbled, none of the larger incumbents is stumbling yet in AI, making it tougher for AMD to create its distinct lane, in our view," Arya added. — CNBC's Michael Bloom contributed to this report.
