AMD (AMD): AI Growth Strategy, Server Shipments Surge, and Analyst Ratings

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the must-buy AI stocks to put in. On December 22, Rosenblatt Securities’ Kevin Cassidy stated that Micron Technology’s upbeat outlook during their net telephone aligned perfectly with Advanced Micro Devices, Inc.’s (NASDAQ:AMD) ain ambitions successful the server CPU space. According to Cassidy, Micron’s comments constituent to a revitalized AI marketplace and amended conditions successful the spot proviso chain, which could assistance respective related stocks. And astatine the bosom of Micron’s positivity is the relation of DRAM, which Cassidy described arsenic an indispensable constituent to AI systems and that constricted proviso volition effect successful shortages.

Cassidy noted that contempt DRAM prices rising, request remains robust crossed each markets. And a cardinal item is the surge successful server shipments. As per Cassidy, Micron’s server portion measurement shipments expectations are present precocious teens percent twelvemonth connected twelvemonth from 10% past quarter. This momentum volition transportation into 2026, helium stated.

For AMD, Cassidy pointed retired that the beardown server portion shipments corroborate the company’s caller comments of server CPU TAM doubling to $60B by 2030. The institution besides acceptable expectations for 50% marketplace stock from the existent 40%.

Separately, Truist reduced its terms people for AMD from $279 to $277 connected December 19. The steadfast near the Buying standing unchanged. This move, the steadfast said, was portion of a broader reappraisal of semiconductor and AI stocks, which resulted successful updating models aft mounting estimates for 2027. William Stein, the pb analyst, anticipates immoderate near-term challenges successful the AI world, wherever companies look existent hurdles similar “finding the powerfulness to tally AI infrastructure and getting the backing to wage for it.” But contempt these issues, Stein is precise optimistic astir the companies, including AMD. He believes AI infrastructure semiconductor stocks stay inexpensive comparative to their growth.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is simply a semiconductor institution that designs and manufactures processors, graphics cards, and information halfway solutions. The company’s GPUs and customized chips are utilized by unreality providers and enterprises to enactment generative AI and instrumentality learning applications.

While we admit the imaginable of AMD arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.