Analyst Amanda Tan from DBS maintained a Buy rating on Advanced Micro Devices and increased the price target to $260.00 from $155.00.
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Amanda Tan’s rating is based on AMD’s strategic positioning in the rapidly growing AI market and its ability to capture significant market share. The company has demonstrated a robust track record of innovation and agility, which has allowed it to gain ground against competitors like Intel in the server and client segments. AMD’s updated product roadmap, including the release of the MI325X accelerator and future series, positions it well to capitalize on the increasing demand for AI infrastructure.
Additionally, AMD’s data center GPU segment is expected to be a key revenue driver, with projections indicating substantial growth in the coming years. Despite challenges in software and ecosystem lock-in compared to Nvidia, AMD is making strides to close this gap with its ROCm software and AI rack architecture. The strategic partnership with OpenAI further validates AMD’s technology and enhances its revenue visibility, reinforcing its status as a viable alternative in high-performance AI infrastructure. These factors collectively underpin Amanda Tan’s Buy rating for AMD, with an upgraded price target reflecting positive developments in AI GPU adoption.
According to TipRanks, Tan is a 4-star analyst with an average return of 16.7% and a 72.58% success rate. Tan covers the Technology sector, focusing on stocks such as Advanced Micro Devices, AEM Holdings Ltd., and Intel.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $295.00 price target.