Robert W. Baird analyst Tristan Gerra maintained a Buy rating on Advanced Micro Devices (AMD – Research Report) today and set a price target of $140.00.
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Tristan Gerra has given his Buy rating due to a combination of factors that highlight Advanced Micro Devices’ promising future in the AI sector. The company has significantly increased its total addressable market estimate for AI accelerators to over $500 billion by 2028, indicating a robust growth potential with a projected compound annual growth rate exceeding 60%. Additionally, AMD’s partnerships with major tech companies like Meta, OpenAI, and Microsoft further strengthen its position in the AI market.
AMD’s recent product launches, such as the MI350 series and the upcoming Helios AI rack, demonstrate substantial advancements in AI computing capabilities. These innovations are expected to deliver significant performance improvements, positioning AMD as a leader in AI technology. Furthermore, the company’s strategic initiatives, including the launch of ROCm 7 and the AMD Developer Cloud, enhance its competitive edge. The firm’s price target of $140 reflects its strong market share gains and superior product roadmap, despite potential risks associated with its business model and market conditions.
In another report released on June 9, Cantor Fitzgerald also maintained a Buy rating on the stock with a $140.00 price target.