5 Advanced Micro Devices Analyst Takeaways On AI Event: Is Chipmaker 'Somewhat Late' Vs. Rival Nvidia?

Zinger Key Points
  • Advanced Micro Devices unveils MI300X with a focus on Generative AI, one analyst says.
  • The company expects the AI TAM to grow to $150 billion by 2027, another analyst adds.

Shares of Advanced Micro Devices, Inc. AMD rose in early trading on Wednesday after the company held on Tuesday its key Data Center and AI Technologies event.

Mizuho Securities On Advanced Micro Devices

Analyst Vijay Rakesh reaffirmed a Buy rating while raising the price target from $90 to $140.

Advanced Micro Devices unveiled its MI300X, with a focus on Generative AI, Rakesh said in a note. “Both MI300X and the Instinct platform will begin sampling in the SepQ, with volume revenue ramps beginning in the DecQ,” he added.

“AMD noted it estimates the AI accelerator TAM growing from $30B today to ~$150B by 2027E, a ~50% CAGR,” the analyst stated. “We believe AMD's support for Open AI development is a positive, potentially with a lower cost per performance versus incumbents,” he further wrote.

Raymond James On Advanced Micro Devices

Analyst Srini Pajjuri maintained a Strong Buy rating while raising the price target from $110 to $145.

“The company launched a new CPU (Bergamo) for cloud-native workloads and highlighted performance/TCO advantages of its mainstream (Genoa) processors,” Pajjuri said.

“Commentary from key hyperscale customers at the event points to strong interest in Genoa/Bergamo CPUs, giving us incremental confidence in our 2H DC segment estimates,” the analyst wrote. The company’s AI roadmap is “solid, but not surprising,” he added.

Check out other analyst stock ratings.

Wedbush On Advanced Micro Devices

Analyst Matt Bryson reiterated an Outperform rating and price target of $145.

The company projected the AI total addressable market (TAM) to grow to $150 billion by 2027, from $30 billion in 2023, Bryson said in a note.

“Not only does this outlook compare favorably to AMD's prior expectation of $64B in 2025, but AMD expressed confidence they will win a meaningful portion of the largely GPU centric business,” he added.

KeyBanc Capital Markets On Advanced Micro Devices

Analyst John Vinh reaffirmed an Overweight rating on the stock.

Advanced Micro Devices expects its generative AI-optimized GPU, the MI300X, “to ship for meaningful revenues in 4Q23,” Vinh said. The company also raised its AI accelerator TAM outlook to $150 billion in 2027, from its prior projection of $64 billion by 2025, he added.

Advanced Micro Devices “discussed favorable performance advantages in large language model (LLM) AI inferencing,” as compared to NVIDIA Corp’s NVDA H100 GPU, the analyst further mentioned.

Bernstein On Advanced Micro Devices

Analyst Stacy Rasgon maintained a Market Perform rating and price target of $80.

The company’s AI discussion “was thinner (with little in the way of hard numbers offered), and the timeframe feels quite delayed relative to the competition,” Rasgon wrote in a note.

“The overall AI opportunity is still very early, but AMD's efforts still strike us as somewhat late when going up against a competitor who already has the roadmap, ecosystem, and track record across compute, hardware, software, networking, and application expertise and who is bending the market to their will,” he added.

AMD Price Action: Shares of Advanced Micro Devices had risen by 2.17% to $127.23 at the time of publishing Wednesday.

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Posted In: Analyst ColorPrice TargetReiterationAnalyst RatingsMoversTechTrading IdeasBernsteinExpert IdeasJohn VinhKeyBanc Capital MarketsMatt BrysonMizuho SecuritiesRaymond JamesSrini PajjuriStacy RasgonVijay RakeshWedbush
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