Advanced Micro Devices Gearing Up For Growth In AI Sector, Predicts Bullish Analyst

Advanced Micro Devices, Inc. AMD and other chipmakers have been in focus amid the China-US battle over AI tech.

GPU revenues may grow in the back half of the year, driven by the MI 300 and El Capitan supercomputer, and Advanced Micro Devices’ stock will “get an AI multiple,” according to Northland Capital Markets.

The Advanced Micro Devices Analyst: Gus Richard upgraded the rating for Advanced Micro Devices to Outperform, while keeping the price target unchanged at $150.

The Advanced Micro Devices Thesis: The market share of the company’s GPU could grow from about 18% in 2022 to 20% over time, Richard said in the upgrade note.

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While NVIDIA Corp NVDA has been the leader in GPUs for decades, Advanced Micro Devices could gain market share “for no other reason than the world needs a second source to NVDA,” the analyst stated.

“AI is evolving rapidly; economic and power constraints require silicon beyond GPUs,” Richard wrote. “We believe AMD has the broadest AI IP portfolio that includes GPU, CPUs, FPGAs, and ASICs will also be used for AI workloads,” he added.

AMD Price Action: Shares of Advanced Micro Devices were up 0.24% to $116.10 at the time of publication on Wednesday.

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