Stifel Nicolaus analyst Ruben Roy has maintained their bullish stance on AMD stock, giving a Buy rating yesterday.
Ruben Roy has given his Buy rating due to a combination of factors surrounding AMD’s recent acquisition of ZT Systems. The acquisition is seen as a strategic move that enhances AMD’s capabilities in AI infrastructure, particularly with the addition of approximately 1,000 engineers skilled in rack-scale expertise. This talent pool is expected to bolster AMD’s competitive position as the market shifts towards multi-cluster rack-scale compute deployments.
Furthermore, the deal aligns with AMD’s roadmap to accelerate its product offerings, particularly in the data center AI solutions space. While the acquisition might initially be dilutive in the short term, it is projected to be accretive by FY26, indicating long-term benefits. The strategic divestiture of ZT’s manufacturing assets is also anticipated to streamline AMD’s operations, allowing it to focus on core competencies and market demands. Overall, these factors contribute to a positive outlook for AMD, justifying the Buy rating.
In another report released yesterday, Wells Fargo also reiterated a Buy rating on the stock with a $140.00 price target.
Based on the recent corporate insider activity of 64 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AMD in relation to earlier this year.