Bank of America raised price targets and ratings for several semiconductor companies based on the growth potential of agentic AI. The brokerage raised AMD's price target to $560 from $500 while maintaining its Buy rating, increased ARM's target to $335 from $245, and double-upgraded Intel to a 'Buy' rating. Nvidia remains BofA's top sector pick. The upgrades follow the firm's revised estimate for the global server CPU market, now projected at more than $170 billion, up from an earlier forecast of $125 billion, driven by businesses investing heavily in AI infrastructure for agentic AI systems capable of carrying out complex tasks with limited human input.
AMD and ARM shares traded over 2% higher in pre-market trading on Thursday, Intel stock surged 5%, while Nvidia edged up 1%.
BofA Raises Server CPU Market Estimate to More Than $170 Billion
Following discussions with industry executives and customers last week at the BofA Global Tech Conference, the brokerage raised its estimate for the global server CPU market to more than $170 billion from its earlier forecast of $125 billion. The revision implies nearly five-times growth and a 37% compound annual growth rate (CAGR) over calendar 2025-30. The firm stated that the rise of agentic AI will create a major growth opportunity for both traditional x86 processor makers and companies developing ARM-based chips.
Intel Receives Double Upgrade, AMD and ARM Get Price Target Increases
Bank of America double-upgraded Intel to 'Buy' rating. The brokerage raised AMD's price target to $560 from $500, representing a potential upside of nearly 24% from Wednesday's close. ARM's price target was raised to $335 from $245, implying a 9% potential upside.
Nvidia Remains BofA's Top Semiconductor Pick
Nvidia remains Bank of America's preferred sector pick. Analysts pointed to the company's strong position across processors, graphics chips, and networking technologies.
Apple's Siri AI Revenue Potential Estimated at $15B-$65B by Fiscal 2030
Last month, Bank of America highlighted Apple as a potential beneficiary of agentic AI. The firm recently raised its target on the iPhone maker, arguing that a more capable AI-powered Siri could open new revenue streams through search, commerce, payments, and app interactions. BofA estimated that Siri could generate an additional $15 billion to $30 billion in revenue by fiscal 2030 under its base-case scenario, with the opportunity rising to $40 billion to $65 billion in a bullish scenario. That could boost Apple's earnings by as much as $2 per share.
Semiconductor Stocks Post Strong Year-to-Date Gains
Retail sentiment surrounding ARM, Intel, Nvidia, and AMD on Stocktwits trended in the 'bearish' zone. Despite the sentiment, investors have piled into the stocks this year, sending Intel surging 197%, ARM soaring 182%, and AMD up 113%. Nvidia shares gained more than 6%. The iShares Semiconductor ETF (SOXX) has gained around 79% in 2026.
FAQ
What price targets did Bank of America set for AMD and ARM?
Bank of America raised AMD's price target to $560 from $500 and increased ARM's price target to $335 from $245.
What is Bank of America's revised estimate for the global server CPU market?
Bank of America raised its estimate for the global server CPU market to more than $170 billion from its earlier forecast of $125 billion, implying a 37% compound annual growth rate over calendar 2025-30.
How much revenue could Apple's Siri generate by fiscal 2030 according to BofA?
Bank of America estimated that Siri could generate an additional $15 billion to $30 billion in revenue by fiscal 2030 under its base-case scenario, with the opportunity rising to $40 billion to $65 billion in a bullish scenario.
