Two major players in the AI hardware race, Advanced Micro Devices (AMD) and Super Micro Computer (SMCI), are back in focus as both prepare to report quarterly results. In a new research note, top Wedbush analyst Dan Ives maintained an Outperform rating on AMD and a Neutral rating on SMCI, reflecting a bullish view on chip growth but a more cautious stance on the AI server maker.
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It is worth noting that Ives ranks 338 out of more than 10,000 analysts tracked by TipRanks. He has a success rate of 56%, with an average return per rating of 16.40% over a one-year timeframe.
Wedbush Sees Continued Upside in AMD Stock
Ives, a 5-star analyst, reiterated an Outperform rating on AMD with a $270 price target, indicating potential upside of about 2%. He believes AMD is well positioned to benefit from rising AI spending, supported by strong demand for its MI300 chips. Wedbush’s research shows growing adoption of these chips among large cloud and enterprise customers, helping AMD gain share in the fast-expanding AI market.
The firm kept AMD on its “Ives AI 30” list of top AI stocks, calling it a core pick for investors seeking long-term exposure to AI growth.
Looking ahead, AMD will announce its third-quarter results on November 4. Wall Street expects the company’s earnings per share (EPS) to rise 27.2% to $1.17, while revenue is projected to increase 28.3% to $8.75 billion, driven by strong demand for AI processors.
Ives Remains Cautious on SMCI Stock
Ives maintained a Neutral rating on Super Micro Computer (SMCI) with a $48 price target, reflecting a more cautious view after its sharp rally this year. SMCI has been one of the top gainers in the AI hardware space, with shares up about 72% year-to-date, fueled by heavy demand for its AI servers and close ties with Nvidia (NVDA) and AMD (AMD).
The analyst noted that SMCI’s long-term growth still depends on the ongoing AI data center buildout, but at current prices, the risk-to-reward looks less appealing than other AI hardware names. The company will need to show steady growth and stable margins in coming quarters to support its high valuation.
Looking ahead, Super Micro will report its Q1 FY26 results on November 4. Wall Street expects the company’s earnings per share (EPS) to fall 49% year-over-year to $0.38, while revenue is projected to edge down 2% to $5.83 billion.
Which Is the Best AI Stock, According to Wall Street?
Using TipRanks’ Stock Comparison Tool, we reviewed how analysts rate the two AI hardware stocks. AMD carries a “Moderate Buy” consensus with a 5.45% downside based on an average price target of $249.92. In contrast, Super Micro holds a “Hold” rating, with analysts expecting a 16.21% downside.
AMD also stands out with a perfect Smart Score of 10, signaling strong fundamentals and bullish sentiment, while SMCI scores 3, reflecting a more cautious analyst outlook.
