Advanced Micro Devices, Inc. (NASDAQ: AMD) shares rallied Thursday after the company announced the launched of its new GenAI chip.
Raymond James On Advanced Micro Devices
Analyst Srini Pajjuri maintained a Strong Buy rating while raising the price target from $125 to $140.
“AMD officially launched its Instinct MI300X Data Center GPU targeted for AI/ML workloads,” Pajjuri said in a note.
Microsoft Corp. (NASDAQ: MSFT), Oracle Corp (NASDAQ: ORCL) and Meta Platforms Inc (NASDAQ: META) took the stage with major server OEM customers, “highlighting the broad-based design win momentum,” he added.
“We are particularly encouraged by META’s plans to use MI300X for inferencing, as we believe internal workloads are important for sustained volume ramps in the near term,” the analyst stated. Meta’s comments suggested
“AMD’s Software is maturing fast,” he further said.
Goldman Sachs On Advanced Micro Devices
Analyst Toshiya Hari reiterated a Buy rating while lifting the price target from $125 to $137.
Advanced Micro Devices indicated a larger TAM (total addressable market) of $45 billion, versus its earlier estimate of $35 billion, Hari stated.
With broadening customer engagements and expectations of an acceleration in the rate of AI adoption, the company raised its Data Center accelerator TAM for 2027 from around $150 billion to around $400 billion, representing a CAGR (compounded annual growth rate) of more than 70%, he added.
Check out other analyst stock ratings.
Mizuho Securities On Advanced Micro Devices
Analyst Vijay Rakesh reaffirmed a Buy rating and price target of $130.
Although Advanced Micro Devices raised its AI/DC TAM to $400 billion, “there is some investor concern on AMD not raising its AI or overall 2024 outlook despite the higher TAM,” Rajesh wrote in a note.
“We are estimating AMD DC revs 1Q24E up 1% q/q (cons. $2.2B, down 3% q/q),” he added. ROCm development seems to be a top priority for the company to compete against NVIDIA Corp.’s (NASDAQ: NVDA) CUDA, “which is the key competitive advantage over potential peers,” the analyst further stated.
Rosenblatt Securities On Advanced Micro Devices
Analyst Hans Mosesmann maintained a Buy rating on the stock.
“Lisa Su’s team put together one of the most impressive new product event/launches by our reckoning…
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