Advanced Micro Devices, Inc. (NASDAQ:AMD) may be gearing up for its most explosive growth yet, with artificial intelligence poised to drive a multi-year earnings boom.

That's based on a new forecast from Bank of America, which sees AMD's earnings per share (EPS) climbing to as high as $18 by 2030—more than five times its current annual EPS—driven by its growing footprint in the artificial intelligence graphics chip market.

Ahead of AMD's Analyst Day event scheduled for Tuesday, Nov. 11, in New York City, Bank of America analyst Vivek Arya maintained a Buy rating and a $300 price target on the stock. That suggests a nearly 30% upside from AMD's current share price.

AI GPU Share, Sales Targets In Focus

Arya expects AMD to raise its estimate for the total addressable market in AI accelerators—chips that power machine learning models—from more than $500 billion to a range of $750 billion to $850 billion.

Bank of America believes AMD will aim to capture a double-digit percentage of this market, particularly in merchant graphics chips, which could mean $55 billion to $65 billion in annual sales by the end of the decade.

The estimate assumes AMD ships about 2 gigawatts of AI compute capacity to OpenAI by 2030, as part of a broader 6 gigawatt buildout, and includes the effect of any stock dilution related to that deal.

“We see potential $15-18 EPS Power ...