MarsBit: Bank of America Raises Outlook for AI Server Chip Market; AMD and NVIDIA Remain Top Picks

Huo Xing Finance reports that on August 15, the semiconductor sector regained buying interest after a sharp decline in July, with Bank of America’s latest analysis further reinforcing this rebound thesis. The bank believes that demand for AI computing and memory has exceeded prior expectations, and the growth trajectory for the AI server chip market still has room for upward revision, with AMD and NVIDIA remaining the most representative preferred picks. Bank of America’s core view is that the market had previously overestimated cloud providers’ cuts to AI capital expenditures; however, recent earnings reports and guidance indicate that investment in AI infrastructure continues. Major cloud providers such as Microsoft and Amazon are continuing to signal strong demand, with improvements observed across the server, GPU, networking, storage, and power supply chains. The bank favors AMD due to its portfolio of AI accelerators and server CPUs, which will benefit from customer diversification; it continues to favor NVIDIA because its product ecosystem, supply chain control, and next-generation platforms will maintain industry leadership.