BNP Paribas Raises AMD Price Target 60% and Lifts Nvidia Outlook on Sustained AI Hardware Demand Surge

The Quick Take

• BNP Paribas lifts AMD (AMD) price target by 60%, citing AI-driven CPU demand and data centre growth
• Bank also raises Nvidia (NVDA) price target as AI infrastructure buildout accelerates across hyperscalers
• Dual upgrade signals growing Wall Street consensus that the AI chip supercycle extends into 2027

BNP Paribas has issued a pair of bullish revisions on the two largest US AI semiconductor companies, raising its price target on Advanced Micro Devices by 60% and increasing its target for Nvidia amid what it characterizes as a sustained acceleration in AI hardware spending. The AMD revision is particularly notable for its magnitude, reflecting revised modelling that embeds faster-than-expected adoption of AMD's EPYC server CPUs and Instinct GPU line within hyperscaler AI training and inference clusters. The bank's analysts cited data centre capacity expansion commitments from Microsoft, Google, and Amazon as the primary demand anchors sustaining the multi-year AI infrastructure investment cycle.

For Nvidia, the BNP Paribas revision reinforces a broader pattern of sell-side institutions revising upward their TAM assumptions for AI training hardware. Nvidia's Blackwell GPU architecture has secured dominant deployment positions across frontier AI model developers, and BNP Paribas appears to be updating its long-term projections to reflect higher ASP sustainability and more robust competitive moats than previously modelled. The revision comes amid an ongoing debate among semiconductor analysts about whether current AI infrastructure investment levels are cycle-peak or structural, with BNP Paribas landing firmly in the structural-growth camp for both AMD and Nvidia through at least 2027.

The dual upgrade also carries sector-wide read-through implications. If BNP Paribas's demand assumptions for AMD and Nvidia prove accurate, it would validate elevated capital expenditure guidance from hyperscalers and extend positive sentiment to adjacent chip suppliers including TSMC, SK Hynix, and Marvell Technology. Investors monitoring the AI semiconductor complex will weigh these revisions against concerns about potential demand saturation, regulatory export restrictions on advanced chips to China, and the emerging competitive landscape from custom silicon programmes at major cloud providers — all variables that could constrain the earnings trajectory that the new BNP Paribas price targets embed.

Synthesized from 2 sources.