Bank of America upgrades AMD to buy citing growth potential

On May 6, 2025, several prominent financial firms released updates on various stocks following earnings reports. In the United States, Bank of America upgraded Advanced Micro Devices from neutral to buy, noting the company's robust Q1 performance and optimistic outlook for Q2 sales, which are projected to be significantly higher than previous forecasts despite challenges posed by trade tensions with China. Rivian, on the other hand, maintained a neutral rating from Goldman Sachs, highlighting the long-term stability of the company despite tariff-induced uncertainties affecting future earnings. Additionally, Bank of America expressed a bullish sentiment towards Wynn Resorts, citing the anticipated opening of a new property in the Middle East as a key growth driver. The firm also upgraded Honeywell to buy based on their assessment that the shares were undervalued. Despite positive developments for Advanced Micro Devices, the broader market context reflects mixed sentiments about technological and service companies. API data from Redburn Atlantic Equities reaffirmed Nvidia as a buy, maintaining its position as a leading choice in the semiconductor sector. Investors were advised to stay informed as forward guidance becomes increasingly scrutinized. The financial narrative highlights differing outlooks across sectors, with some companies like AMD and Wynn Resorts being viewed positively, while others like Rivian are seen as stable but lackluster in the short term. Furthermore, analysts from Bank of America are taking a stand by upgrading several companies they believe have the potential to outperform in the coming months. This indicates a trend where analysts are factoring in not only earnings performance but also future potential in light of existing market challenges, like supply chain issues and geopolitical factors affecting trade. Overall, the insights from May 6 suggest a cautious yet optimistic perspective among analysts, particularly from Bank of America, regarding selected growth stocks while remaining vigilant about ongoing economic concerns impacting sectors such as technology and consumer services.