Important points
Advanced Micro Devices may have disappointed investors at Thursday’s Advancing AI event, but analysts said they remained bullish on the company’s growth prospects. AMD stock fell on Thursday after the company unveiled its latest AI chips without raising its outlook or announcing any new partnerships. However, Jefferies analysts said they believe AMD’s new AI chips have “good demand” and could still drive the stock higher.
Advanced Micro Devices (AMD) may have disappointed investors at Thursday’s Advancing AI event, but analysts said they remain bullish on the company’s growth prospects.
AMD announced a number of new AI products at the event, but Jefferies analysts said investors are looking forward to seeing clear signs of competition from Nvidia (NVDA), new customer announcements, and even “increased AI guidance.” He said he may have been looking for “possibilities.” 5 billion, but the future is likely to be left to revenue. ”
AMD stock fell 4% on Thursday after the event, but regained some of that loss with a gain of just over 2% on Friday.
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Analysts at Bank of America said that AMD’s latest Instinct MI325X GPU is “still a full year behind NVDA’s latest Blackwell, and there is no near-term catalyst to change things.”
Jefferies analysts suggest that AMD’s MI350 “will be able to better compete” with Nvidia’s Blackwell next year, adding that “AMD will be tracking NVDA for now.”
But analysts said they believe there is “sufficient demand” and that AMD’s new AI chips could still “drive further market share growth” as companies rush to build out AI infrastructure. Ta.
Jefferies maintained a “buy” rating on the stock and a price target of $190, representing a more than 13% premium to Friday’s closing price of $167.89. Bank of America also maintained a buy rating with a price target of $180. Roughly three-quarters, or 13, of the 17 other analysts tracked by Visible Alpha also held a “buy” or equivalent rating on the stock as of Friday, with a consensus target of $192.13. It becomes.
