In a report released today, Joshua Buchalter from TD Cowen maintained a Buy rating on Advanced Micro Devices, with a price target of $290.00.
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Joshua Buchalter has given his Buy rating due to a combination of factors that highlight AMD’s strategic positioning in the AI market. Despite the current concerns surrounding AI investments, Buchalter believes that AMD is well-positioned to benefit from sustained AI compute spending. The recent decline in AMD’s stock price, coupled with what he perceives as excessive scrutiny compared to its peers, presents an attractive entry point for investors.
Buchalter’s confidence is bolstered by AMD’s robust hardware roadmap, the development of its ROCm software ecosystem, and significant customer wins, which are expected to drive value creation in AI compute. He anticipates that the Helios rack and MI450 will be pivotal in AMD’s growth story starting in mid-2026, with a projected significant increase in earnings by the fourth quarter of that year. Additionally, Buchalter points out that AMD’s exposure to OpenAI is comparable to its competitors, and the company is diversifying its customer base with large-scale deployments from other major clients. He also notes that AMD’s server and client CPU businesses, though less emphasized, continue to provide growth potential and diversification, further supporting his optimistic outlook.
In another report released on November 25, Bank of America Securities also maintained a Buy rating on the stock with a $300.00 price target.