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On August 22, 2024
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1 Wall Street Analyst Just Called AMD Stock a Buy. Is It? | The Motley Fool
Advanced Micro Devices (AMD 0.15%) has yet to see the kind of soaring growth that chip stocks like Nvidia have, but that doesn't mean it hasn't taken part in the AI boom. Shares of the diversified chip specialist, which is best known for PC CPUs, are up 141% since the start of 2023. In recent weeks, a number of bullish news items have come out for AMD, including a strong second-quarter earnings report. Now, another Wall Street bull is lining up behind the stock. Financial services firm Edward Jones put out a note initiating coverage on AMD with a buy rating and put the shares in the firm's stock "focus list," indicating elite status. Edward Jones predicted that AMD would deliver "outsize growth" in data center infrastructure as it's coming off a quarter where sales more than doubled in the data center segment and demand remains exceptionally strong as indicated by Nvidia's results. It also has an opportunity to cross-sell new products into the embedded segment following its acquisition of Xilinx in 2022. In addition to the strong earnings report at the end of July, AMD has benefited from the collapse of rival Intel, Nvidia's delay in its new Blackwell platform, and the recent $4.9 billion acquisition of ZT system, which makes both manufacturing and design systems for AI infrastructure. AMD is moving quickly to capture the AI opportunity in front of it, and it's earning more support on Wall Street. It will take time for profits to ramp up, but the stock has strong upside potential especially given its momentum in the data center category. I think it's a buy now.
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Is Advanced Micro Devices Stock Going to $200? 1 Wall Street Firm Thinks So. | The Motley Fool
Soaring demand for Advanced Micro Devices' (AMD 1.28%) data center chips sent the stock to a high of $227 earlier this year. It is currently off those highs -- around $157 -- and offering an attractive entry point, according to Wedbush. The firm maintained an outperform (buy) rating on the stock this week and also kept its price target at $200, representing upside of 27% over the current share price. Wedbush is optimistic about AMD's recent acquisition of ZT Ssystems, a leading provider of artificial intelligence (AI) infrastructure to data center operators. Here's what this means for AMD's growth, and why it could help the stock return to its previous high. On Monday, AMD announced the acquisition of ZT Systems in a cash and stock deal. "ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities," AMD CEO Lisa Su said in a statement. Some investors see the acquisition as a desperate attempt to catch up to Nvidia, which is dominating the market for high-powered graphics processing units (GPUs) and AI systems for data centers. Wedbush disagrees. The firm likes that AMD was able to acquire ZT at a discounted valuation. AMD will look to sell off ZT's manufacturing assets and retain the more valuable design and services business. Most importantly, Wedbush sees the $4.9 billion deal as confirmation of AMD's growth opportunity in the growing $236 billion data center market. AMD is growing right along with it. Its data center revenue skyrocketed 115% year over year last quarter, and the acquisition of ZT Systems should only strengthen its offering to the leading data center players in the world. AMD is still seeing weak demand in other areas of its business, such as gaming GPUs, but once it's firing on all cylinders again, the stock may already be well past the analyst's price target.
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A Wall Street analyst has given AMD stock a "Buy" rating, citing potential for significant growth. The analyst's bullish stance is based on AMD's strong position in the AI chip market and its competitive edge against rivals.
In a recent development that has caught the attention of investors, a prominent Wall Street analyst has issued a "Buy" rating for Advanced Micro Devices (AMD) stock, signaling strong confidence in the company's future prospects 1. This positive outlook comes at a time when the semiconductor industry is experiencing rapid changes, particularly in the artificial intelligence (AI) sector.
The analyst's optimistic view is largely based on AMD's growing presence in the AI chip market. As the demand for AI-capable hardware continues to surge, AMD has been positioning itself as a formidable competitor to industry giants like Nvidia. The company's recent advancements in AI-focused processors have been seen as a strategic move to capture a larger share of this lucrative market 1.
Perhaps the most striking aspect of the analyst's report is the projection of a potential 200% gain for AMD stock 2. This ambitious forecast is based on several factors, including AMD's technological innovations, expanding market share, and the overall growth trajectory of the AI industry. If realized, such a gain would represent a substantial return for investors and solidify AMD's position as a key player in the tech sector.
The analyst's report highlights AMD's competitive edge against its rivals, particularly in terms of product performance and pricing. The company's ability to offer high-performance AI chips at competitive prices has been identified as a key factor that could drive market share gains in the coming years 1.
While the analyst's outlook is decidedly positive, it's important for investors to consider the broader context of the semiconductor industry. The AI chip market is highly competitive, with established players and new entrants vying for dominance. Factors such as global supply chain dynamics, regulatory environments, and technological advancements could all impact AMD's performance in the short and long term 2.
The report also touches on AMD's strategic initiatives, including partnerships with major tech companies and ongoing research and development efforts. These moves are seen as crucial for maintaining the company's competitive edge and capitalizing on the growing demand for AI-capable hardware across various industries 1.
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NVIDIA and AMD stocks are soaring as the AI chip market expands. Analysts predict continued growth and increased competition in the sector, with both companies well-positioned to benefit from the AI boom.
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AMD's stock has shown remarkable growth, doubling in value last year. The company is positioning itself as a strong competitor in the AI chip market, challenging NVIDIA's dominance.
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