Robert W. Baird analyst Tristan Gerra has maintained their bullish stance on AMD stock, giving a Buy rating yesterday.
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Tristan Gerra’s rating is based on several promising developments for Advanced Micro Devices (AMD). The company is expected to experience significant growth in AI revenue, projected at approximately 40% year-over-year for 2026. This growth is attributed to increased demand and higher pricing, particularly for the Mi355 product, which has shown healthy initial demand. Additionally, the Mi308, although not included in current guidance, is anticipated to contribute significantly to revenue starting in the fourth quarter.
AMD is also gaining market share in traditional cloud services and client segments, with notable strength in high-performance computing and sovereign AI initiatives. The company’s management has expressed positive outlooks on the secular growth drivers for CPUs, especially in data centers where AI demand is rising. Despite some macroeconomic uncertainties, AMD’s client revenue is expected to improve, supported by underwhelming demand for competing products. These factors collectively support Gerra’s Buy rating for AMD, with a price target set at $175.
According to TipRanks, Gerra is a 5-star analyst with an average return of 9.0% and a 52.10% success rate. Gerra covers the Technology sector, focusing on stocks such as Advanced Micro Devices, Seagate Tech, and Knowles.
In another report released yesterday, TD Cowen also maintained a Buy rating on the stock with a $195.00 price target.