NVIDIA and AMD Price Targets Raised by BofA After Sovereign AI Partnerships

Strategic AI Deals Drive Confidence in Leading Chipmakers

In a move that reflects growing institutional confidence in the AI sector, Bank of America (BofA) has raised its price targets for semiconductor leaders NVIDIA and AMD. This bullish outlook follows major sovereign AI partnerships that signal a global shift in how nations approach artificial intelligence development and infrastructure.

Governments Fuel the AI Race

Recent sovereign deals involve strategic collaborations between national governments and major chipmakers. These agreements aim to fast-track AI capabilities, with a particular focus on data centers, national AI labs, and high-performance computing systems. Both NVIDIA and AMD have emerged as top beneficiaries of this trend, thanks to their advanced GPU and chipset technologies.

• NVIDIA continues to lead with cutting-edge GPUs that power generative AI, deep learning, and neural network applications.

• AMD gains momentum with its competitive MI300 accelerators and strong server processor lineup.

These partnerships not only provide long-term revenue visibility for both companies but also reinforce their roles as critical providers in the global AI arms race.

Why Bank of America Raised Price Targets

BofA analysts cited strong demand from public-sector clients and a sharp increase in sovereign AI spending. These deals offer:

• Revenue stability through long-term contracts

• Higher margins from large-scale infrastructure deals

• Wider adoption of AI compute technologies at a national level

With sovereign nations now treating AI as essential infrastructure, the demand for top-tier chips is accelerating rapidly. BofA sees this as a strong reason to raise expectations for NVIDIA and AMD’s near- and long-term performance.

What It Means for Investors

The AI hardware space is heating up, and this development adds fuel to investor enthusiasm. Both NVIDIA and AMD stocks have already delivered strong returns in 2025, and sovereign backing could provide an additional tailwind.

Investor Considerations:

• Increased visibility and stability from national-level contracts

• Strategic exposure to core AI infrastructure companies

• Strong fundamentals backed by growing global demand

Final Thoughts

As sovereign nations invest in AI infrastructure, companies like NVIDIA and AMD are becoming critical enablers of next-generation technology. With BofA’s upgraded price targets reflecting confidence in this trend, both companies are set to play a leading role in the AI-powered future.