Advanced Micro Devices (AMD) saw its stock hit 52-week lows at this month’s Consumer Electronics Show, but one investor, On the Pulse, believes the company has a strong case for future growth.
Despite struggling to keep pace with industry peers and facing competition from Nvidia, AMD’s growing revenues and improving margins in the data center segment are worth noting. However, its slow product rollout cycle and limited AI-specific capabilities have hindered its progress.
On the Pulse, a 5-star investor, is optimistic about AMD’s prospects. They believe that the company’s new AI accelerators, including the MI325X Instinct AI accelerator, will help boost sales, profit growth, and gross margins in 2025. With Nvidia’s Blackwell product sold out through the end of the year, On the Pulse thinks MI325X could capitalize on the growing demand for data center chips.
The investor assigns AMD a Strong Buy rating, citing the company’s potential to up-scale its gross margins more than Nvidia in 2025. They also point out that AMD’s share prices have fallen significantly, making it an attractive investment opportunity.
TipRanks’ analysis backs On the Pulse’s sentiment. Of the 32 analysts covering AMD, 21 rate it a Buy, and the stock’s 12-month average price target is $172.24, implying an upside of over 40%.
Source: https://www.tipranks.com/news/grab-the-bull-by-the-horns-says-investor-about-amd-stock