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Is it better late than never?
Advanced Micro Devices Inc. owns AMD,
It’s soared 140% over the past year, but New Street Research analysts say there’s still time to jump on the bull train.
New Street’s Pierre Ferrag upgraded AMD stock to buy late Tuesday and set a price target of $215 for the second half of 2024. That represented an increase of more than 25% from Tuesday’s closing price, although the stock was up more than 5% late in Wednesday’s session.
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“[O]What your work on AI architecture and ecosystems suggests. [graphics processing units] It will continue to dominate,” Ferrag wrote. “Second, the structural shortfall is likely to persist for several years, making it easier for AMD to establish a defensible challenger position.”
His upgrade comes amid an analysis of what the chip sector will look like if annual spending across the data center chip market reaches $400 billion in 2027.
“As a result of this analytical work, we found that AMD is not only the most attractively valued company,” Ferrag wrote, but “AMD is not only the most attractively valued company,” Ferrag wrote, “but it also appears to be a moderately valued company with minimal market share growth and slow adoption.” Looks like it’s ready to show off.
In other words, “Even if market share relative to Intel slows or stabilizes, [central processing units] …And while gaming and embedded devices growth remains slow given the current correction, AMD could see revenue growth of more than 20% annually over the next four years,” he added.
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This stock represents his preferred way of dealing with the rapid adoption of data center AI chips. Meanwhile, Ferrag said that Taiwan Semiconductor Manufacturing Co., Ltd. shares TSM.
Holds “limited market share uncertainty, better-than-expected upside, and attractive valuations in both rapid and slow adoption scenarios” and is the “least risk” option. It looks like.
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