AMD price target raised to $265 from $192 at Melius Research

Melius Research raised the firm’s price target on AMD to $265 from $192 and keeps a Buy rating on the shares. The analyst increased estimates for AMD saying the company’s data center prospects seem to be getting better both near- and long-term. The MI300X should benefit significantly from the “inferencing phase” of artificial intelligence, which is just beginning and requires a lot of high-bandwidth memory that is seeing increased supply each quarter this year, the analyst tells investors in a research note. The firm’s checks also indicate that traditional server CPU sales are improving with better fundamentals and solid execution.