Analyst Vivek Arya of Bank of America Securities maintained a Buy rating on Advanced Micro Devices (AMD – Research Report), retaining the price target of $130.00.
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Vivek Arya has given his Buy rating due to a combination of factors that highlight Advanced Micro Devices’ (AMD) strong positioning in the rapidly growing AI market. The company has demonstrated consistent progress in its AI infrastructure platform, as evidenced by its recent event in San Jose, where AMD showcased its advancements in AI roadmap execution, customer base expansion, and software development. Notably, AMD’s collaboration with major tech companies like Meta, Oracle, and Microsoft, as well as its potential engagement with AWS, underscores its strategic partnerships in the AI space.
Additionally, AMD’s new MI355X GPUs, which offer significant performance improvements and competitive pricing, are expected to drive substantial revenue growth. The company’s ambitious plans for future product launches, such as the Helios rack-scale system and next-generation CPUs, further solidify its commitment to capturing a larger share of the AI market. With a projected AI total addressable market (TAM) of $500 billion by 2028 and AMD’s forecasted revenue growth, Arya maintains a positive outlook on AMD’s ability to capitalize on these opportunities, justifying the Buy rating.
In another report released yesterday, Robert W. Baird also maintained a Buy rating on the stock with a $140.00 price target.
AMD’s price has also changed slightly for the past six months – from $130.600 to $118.500, which is a -9.26% drop .