Musk’s Nvidia endorsement spooks AMD while BofA sees big AI upside ahead

AMD stock fell about 7% after Elon Musk endorsed Nvidia as the AI-chip leader, even as AMD posted solid data-center growth and guided Q3 revenue near $13B. Bank of America analyst Vivek Arya said to ignore the quarterly noise and focus on AMD’s longer AI opportunity, with Helios ramp beginning in 2027 and a Buy rating with a $620 target; he also raised 2026–2028 earnings estimates and sees the AI compute market exceeding $2 trillion by 2030, with AMD gaining meaningful share of GPUs and servers (roughly 7–8% of GPUs and 25–30% of CPUs) to push earnings toward the $30s per share by decade end, even if Nvidia remains the leader.