Why does BofA think AMD will outperform Intel and ARM?

Due to strong momentum in the data center server market with EPYC processors, gaining market share from Intel.

What challenges do Intel and ARM face according to the note?

Intel faces strategic turnaround challenges and weak PC demand, while ARM struggles with smartphone weakness and high R&D costs.

BofA: Intel, ARM Face Near-Term Pain While AMD Rides Server Boom

Q: Did BofA issue any rating changes?

No, they did not issue formal rating or price target changes in this note.

Bank of America predicts that upcoming CPU earnings will reveal contrasting stories, with AMD riding a server boom while Intel and ARM face near-term pain.

July 14, 2026

2 min read

Source: Proactive

Bank of America analysts expect the upcoming earnings reports from major CPU makers to reveal starkly different stories, with Advanced Micro Devices (NASDAQ:AMD) benefiting from a server boom while Intel (NASDAQ:INTC) and Arm Holdings (NASDAQ:ARM) face near-term headwinds.

Recommendation Change

BofA did not issue formal rating or price target changes in this note, but painted an optimistic picture for AMD and a relatively cautious one for Intel and ARM.

Analyst Rationale

Analysts believe AMD is riding strong momentum in the server market thanks to its EPYC processors, gaining market share at Intel's expense. In contrast, Intel faces challenges in its strategic turnaround and weak PC demand, while ARM struggles with smartphone weakness and rising R&D costs.

Context

The note comes ahead of Q2 earnings for most of these companies. AMD has posted strong server revenue in recent quarters, while Intel has announced cost-cutting and restructuring plans. Qualcomm (NASDAQ:QCOM) also faces increased competition in the chipset market.

What to Make of It

The note suggests investors may see divergent stock performance post-earnings, with AMD likely outperforming in the near term while Intel and ARM may need more time to recover.

Frequently Asked Questions

They expect a sharp divergence in earnings, with AMD outperforming due to a server boom while Intel and ARM face near-term pain.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.