Analyst Amanda Tan from DBS maintained a Hold rating on Advanced Micro Devices and increased the price target to $155.00 from $105.00.
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Amanda Tan’s rating is based on AMD’s strategic advancements and market positioning. The company has been successfully gaining market share from Intel in the CPU market, which is a positive indicator of its competitive strength. Additionally, AMD’s role as a key alternative to Nvidia in the GPU market, particularly in AI accelerators, supports its growth prospects.
However, despite these strengths, Amanda Tan acknowledges the challenges AMD faces, such as the entrenched position of Nvidia’s CUDA platform, which creates high switching costs for customers. While AMD is making progress in narrowing this gap with its ROCm software stack and other initiatives, achieving parity remains a longer-term goal. Furthermore, while AMD’s data center growth and roadmap are promising, much of this potential is already reflected in its current stock price, leading to the Hold rating.
In another report released on September 19, Bernstein also assigned a Hold rating to the stock with a $140.00 price target.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AMD in relation to earlier this year.