AMD and Meta Platforms: Rosenblatt's Top Picks for AI-Driven Growth in 2025

AMD and Micron Are Top Analyst Picks for AI and Next-Gen Tech Growth - Advanced Micro Devices (NASDAQ:AMD), Micron Technology (NASDAQ:MU)

Micron praised for HBM dominance, driving AI and memory cycles. Rosenblatt polled its analysts, including Steve Frankel, gathering their top picks for the first half of 2025. The stocks reflect key themes across its research universe, including the Age of Artificial Intelligence and the build-out of next-generation broadband. Steve Frankel maintained a Buy rating on Advanced Micro Devices, Inc AMD with a price target of $250. Also Read: Nvidia Secures EU Approval For Run:ai Deal, US Probes China Export Breach AMD is one of Rosenblatt's top picks for the first half of 2025 on momentum in CPU and GPU share gains into 2025 and a broader non-AI recovery exiting 2025. The difference entering 2025 is that the Street acknowledges this dynamic, which has legs for double-digit market share in GPU compute and AI inference at the edge, being a secular opportunity on Xilinx incumbency and chiplet prowess. AMD's EPYC processors will likely continue increasing the company's revenue share in server and Data Center CPUs as the business proposition is significant, the analyst said. AMD's MI350 in 2025 and MI400 in 2026 GPUs will drive additional revenues and increased market share on hyperscale adoption, chiplet scale, and AI moving to the edge, he added. The price target reflects a 25-times P/E multiple to Frankel's $10.00 fiscal 2026 adjusted EPS. This multiple is in line with the analyst's AI compute group average of 25 times. Frankel reiterated a Buy rating on Micron Technology, Inc MU with a price target of $250. Micron is one of Rosenblatt's top picks for the first half of 2025, as he liked the big opportunity for DRAM content deployment in AI platforms going forward. In particular, the analyst liked Micron's HBM opportunity, where the trade ratios are 3-to-1 to DDR5 and moving to 4-to-1 with the move to HBM4, a structural shift Frankel did not witness in any other memory cycle. Industry HBM supply continues to be an issue to watch as supply does not catch up to demand well into calendar 2025. For Micron, Frankel's viewpoint on HBM is more related to the overall implications of DRAM bit supply, with HBM3E garnering a 3-to-1 trade ratio and HBM4 a 4-to-1 trade ratio, creating a favorable supply and demand dynamic. Frankel noted Micron as an HBM share gainer in HBM3E and HBM4 varietals and as the segment moves from 8-Hi to 12-Hi and 16-Hi configurations, where power efficiency (a Micron structural advantage) becomes increasingly important. Frankel found using P/E to value Micron reasonable, given its proven consistent profitability through cross-memory cycles, aggressive share buybacks, and a cycle driven by AI workload dynamics correlating to DRAM content. The price target reflects a mid-teens P/E multiple on the analyst's $18 fiscal 2026 adjusted EPS. Price Actions: At last check on Monday, AMD stock was up 4.70% at $124.82. MU is down 0.78%. Also Read: Broadcom Expects Decade-Long AI Chip Boom as Big Tech Invest Billions Photo via Shutterstock AMDAdvanced Micro Devices Inc$124.704.60%Overview Rating:Speculative37.5%Technicals Analysis660100Financials Analysis200100WatchlistOverviewMUMicron Technology Inc$89.42-0.78%Market News and Data brought to you by Benzinga APIs

AMD, Meta Platforms top picks at Rosenblatt By Investing.com

Investing.com -- Rosenblatt analysts said in a note Monday that Advanced Micro Devices (NASDAQ:AMD) and Meta Platforms (NASDAQ:META) are two of their top stock picks for the first half of 2025, citing transformative growth opportunities in artificial intelligence (AI) and robust financial performance. AMD is highlighted as a standout performer due to its growing market share in CPUs and GPUs and its position in AI inference at the edge. "AMD's EPYC processors are set to continue increasing the company's revenue share in server and data center CPUs," Rosenblatt analysts noted. Additionally, they state that its GPU pipeline, including the upcoming MI350 and MI400, is expected to gain traction with hyperscale adoption and chiplet scalability. The firm sees AMD benefiting from secular trends in AI and a broader non-AI market recovery. With a price target of $250, Rosenblatt values AMD at a 25x P/E multiple on a projected FY26 EPS of $10.00. However, analysts caution about risks in AMD's highly competitive and cyclical semiconductor industry, where execution missteps or economic slowdowns could impact performance. Meta Platforms is experiencing what Rosenblatt calls an "impressive and durable AI-driven growth renaissance." They note that revenue surged 22% in the first nine months of 2024, driven by advertising innovations leveraging AI to enhance ad efficiency, daily user engagement, and campaign effectiveness. Rosenblatt anticipates Meta's revenue growth to sustain into 2025, bolstered by robust ad performance and investments in AI infrastructure. The firm projects Meta's adjusted EBITDA margins will rise to 62.6% in 2025, with a price target of $811 based on a 29x multiple of 2025E EPS. While both stocks face risks -- ranging from regulatory pressures for Meta to market volatility for AMD -- Rosenblatt sees strong upside potential for investors as these companies capitalize on the expanding AI ecosystem.