Analyst Christopher Rolland from Susquehanna reiterated a Buy rating on Advanced Micro Devices and keeping the price target at $300.00.
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Christopher Rolland has given his Buy rating due to a combination of factors that highlight Advanced Micro Devices’ strong growth potential and strategic positioning in the market. A key driver is AMD’s ambitious projection for its Data Center segment, which is expected to grow at a compound annual growth rate (CAGR) of over 60% in the next three to five years, significantly contributing to the company’s overall revenue growth of more than 35% CAGR. This growth is further supported by AMD’s strategic initiatives in AI and data center technologies, which are projected to expand the company’s total addressable market to $1 trillion by 2030.
Moreover, AMD’s financial outlook is promising, with expectations of achieving an earnings per share (EPS) of over $20 in the next few years, potentially reaching $25 by 2030. The company is also poised to improve its gross margins and operating margins through scale, optimization, and a favorable product mix. Additionally, AMD’s increasing market share in both the server and client markets, along with its strong presence in AI accelerators, positions it well for sustained growth. These factors collectively underpin Rolland’s confidence in AMD’s future performance, justifying the Buy rating.
In another report released today, Barclays also maintained a Buy rating on the stock with a $300.00 price target.