Advanced Micro Devices (AMD) received another downgrade on Thursday, days after Goldman Sachs and HSBC downgraded the stock. Wolfe Research analyst Chris Caso downgraded AMD from Buy to Peer Perform on Thursday.
Growth stocks have been all the rage in the post-pandemic era, and there's a good chance that they could continue spearheading the market's gains.
Wolfe Research expects AMD's AI business to disappoint this year relative to current market expectations.
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.
The stock of Advanced Micro Devices (NASDAQ: AMD) has been on something of a roller coaster ride in recent months, having recorded both stellar rallies and staggering drops.
The AI market is expected to surge to $780-$990 billion by 2027, with workloads growing 25-35% annually. The AI accelerator market is projected to grow at an impressive 70% CAGR through 2027, driven by rising hardware demand. With 192GB HBM3 memory and 5.3TB/s bandwidth, Advanced Micro Devices, Inc.'s MI300X targets memory-intensive AI inference tasks with unmatched efficiency.
AMD stock (NASDAQ:AMD) has seen a meaningful sell-off over the past week, declining by about 11% over the last five trading days. The stock also remains down by about 25% since early 2024.
Advanced Micro Devices (AMD 3.33%), also known as AMD, has been a surprisingly underperforming tech stock over the past year. In 2024, it declined by 18% even despite its promising growth opportunities as a top artificial intelligence (AI) chip maker.
It's tempting to try and pick stocks that you think might double or triple in value in a year or two. However, the best gains often come over the long term, and sometimes they can come in unexpected ways.
According to Morgan Stanley, a group of four tech giants (Microsoft, Amazon, Alphabet, and Meta Platforms) could spend a combined $300 billion building data center infrastructure for artificial intelligence (AI) development during 2025.
Regenxbio's rolling BLA submission completion of RGX-121 for the treatment of patients with MPS II expected in Q1 of 2025. Partnership established with Nippon Shinyaku to develop RGX-121 and RGX-111 for the treatment of patients with MPS II and MPS I respectively. Data from both the ASCENT and ATMOSPHERE pivotal studies, using ABBV-RGX-314 for the treatment of patients with Wet Age-Related Macular Degeneration, expected in 2026.
AMD's Data Center segment, driven by AI demand, is forecasted to achieve robust revenue growth, contributing to a projected 35% stock CAGR over the next three years. With a 35% margin of safety, an FY2027 price target of $280, and a discounted intrinsic value of $175, AMD's current $115 price represents a strong buying opportunity. Geopolitical tensions (e.g., Taiwan) and recession risks pose challenges, but AMD's AI positioning and my cash strategy offer resilience and support a bullish outlook.