Bank of America: AI Server Chip Market Growing Faster Than Expected, AMD and NVIDIA Still Top Picks

August 15th. After a sharp decline in July, the semiconductor sector regained buying interest, and Bank of America's latest assessment further strengthened this rebound thesis. The bank believes that AI computing and memory demand are stronger than previously expected, with room for upward revision in the growth trajectory of the AI server chip market. AMD and NVIDIA remain the most representative preferred stocks.

Bank of America's key view is that the market was previously overly concerned about cloud providers reducing AI capital expenditures, but recent financial reports and guidance indicate that AI infrastructure investment is still ongoing. Cloud providers such as Microsoft and Amazon continue to signal strong demand, with recovery seen in servers, GPUs, networks, storage, and the power chain. The bank is optimistic about AMD because its AI accelerators and server CPU combination will benefit from customer diversification, while continued bullishness on NVIDIA is due to its product ecosystem, supply chain control, and next-generation platforms that will maintain its industry-leading position.