Robert W. Baird analyst Tristan Gerra has maintained their bullish stance on AMD stock, giving a Buy rating yesterday.
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Tristan Gerra has given his Buy rating due to a combination of factors that highlight Advanced Micro Devices’ promising future prospects. One of the key reasons is the anticipated increase in AMD’s AI Total Addressable Market (TAM) estimate, which is expected to be raised during the company’s upcoming financial analyst day. This, along with the ramp-up of the Mi450 in the second half of 2026, serves as a catalyst for the stock’s potential growth. Additionally, the potential resumption of Mi308 shipments, although currently uncertain, could provide significant upside.
Furthermore, AMD’s engagement with OpenAI is projected to generate substantial revenue over the coming years, starting in the latter half of 2026. The company’s focus on market share gains in AI, combined with the competitive specifications of the Mi450, positions AMD favorably in the industry. Despite ongoing expenses, operating costs as a percentage of revenue are expected to decline, aided by the OpenAI-related ramp. These factors, along with AMD’s strong quarterly performance and revenue guidance, contribute to Gerra’s optimistic outlook and Buy rating for the stock.
In another report released yesterday, Roth MKM also maintained a Buy rating on the stock with a $300.00 price target.
Based on the recent corporate insider activity of 62 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.