The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Advanced Micro Devices, Inc. is at an inflection point, poised to capitalize on AI with new products and strategic shifts. Aiming for a $1 trillion valuation in five years. Key Q2 earnings drivers include MI300/data center revenue, M&A integration progress, and gross margin outlook—critical for AMD to close the gap with Nvidia.
As the Q2 2025 earnings season begins, investment strategist Shay Boloor has outlined five stocks to watch and potentially invest in.
AMD's MI350 series positions the company as a real AI chip competitor to Nvidia, driving HSBC's price target increase to $200. Strong financials, including rising revenue and net income, support AMD's growth thesis and limit downside risk. AMD's partnerships with OpenAI, Microsoft, Meta, and others validate its AI ecosystem and expand its market opportunity.
Advanced Micro Devices (AMD) stock jumped Thursday after analysts suggested the company's latest AI chips could take on Nvidia's (NVDA) offerings.
Advanced Micro (AMD) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
Nvidia Corporation remains my core AI infrastructure holding, supported by strong fundamentals, robust demand, and a durable developer ecosystem despite elevated valuations and China risks. Advanced Micro Devices, Inc. offers tactical upside as a less crowded, less geopolitically exposed play, with growing traction in sovereign AI and inference workloads, but faces execution risks. I recommend maintaining Nvidia as a core holding and using AMD for tactical adjustments, while trimming AMD from the core semiconductor portfolio for now.
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HSBC's Frank Lee raises AMD target to $200, citing strong AI demand and rising pricing power beyond Nvidia.
Advanced Micro Devices Inc (NASDAQ:AMD) shares are up 3.1% to trade at $142.69 at last check, after an upgrade from HSBC to "buy" from "hold" to go with a price-target hike to $200 from $100.
Meta's embrace of AMD's MI300X, alongside new deployments at Microsoft, Oracle, and DigitalOcean, makes AMD the prime second source to Nvidia as AI compute demand accelerates. The MI300X's 192 GB HBM3e, chiplet cost advantages, and maturing ROCm software stack uniquely enable massive LLM inference and strengthen AMD's long-term moat. Robust Q1 2025 results - 36% revenue growth, expanding gross margins, and a net-cash balance sheet - underscore AMD's operational leverage and capacity to fund further AI expansion.
AMD's AI momentum and data center growth impress, but stiff competition and weak guidance cloud the near-term outlook.