AMD's Stock Has Great Potential to Grow, Thanks to AI Opportunities, Says Analyst

AMD’s Chances in the AI Chip Market Look Bright, Says Wedbush Securities.

Wedbush Securities is getting more optimistic about Advanced Micro Devices (AMD) becoming a big name in the artificial intelligence (AI) chip market. Matt Bryson, an analyst at Wedbush, is sticking to his positive view on AMD and has even bumped up his price target for the company.

On Tuesday, Bryson kept his “Outperform” rating on AMD, raising the target price from $130 to $200. But despite this good news, AMD’s stock was a little down at $167.80 in early trading, while the Nasdaq Composite saw a slight increase.

For a while now, Wedbush has seen AMD as a strong contender and a good alternative to NVDA in the chip market. Bryson is now even more positive about how well AMD’s graphics processing units (GPUs), especially those used in data centers, are going to sell. He thinks this uptick in sales will really help AMD grow.

Bryson’s latest forecast says AMD might make about $3.1 billion from selling these data center GPUs this year. That’s a big jump from his earlier $2 billion estimate. He also thinks AMD could grab a decent chunk of the AI GPU market, maybe even a mid to high single-digit percentage, by the end of the year.

Bryson believes the recent rise in AMD’s stock price is all about the potential of their new MI300 chip to make waves in the market. He’s feeling more sure about when the MI300 will start shipping and how well it will do with major U.S. cloud computing providers. The MI300 is AMD’s big bet for powering AI projects and applications.

Over the past year, AMD’s stock has done really well, going up by 118%, which is more than double the 49% increase seen by the iShares Semiconductor ETF. This shows how much confidence investors have in AMD’s future in the AI chip market.

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