Analyst adjusts AMD stock price target after AI event
TheStreet · Jerod Harris/Getty Images
The reviews are in and, well, they're ... mixed.
We're not talking about critics covering the premiere of a Broadway show or a Hollywood movie, but rather analysts' reactions to Advanced Micro Devices' ( AMD) "Advancing AI 2024" event in San Francisco.
The company used the presentation to launch what it called “the latest high performance computing solutions defining the AI computing era.” That lineup included 5th Generation AMD EPYC server central processing units, AMD Instinct MI325X accelerators and Ryzen AI Pro 300 Series PC processors.
Chairwoman and CEO Lisa Su said the MI325X would start shipping at the end of the current quarter and would be in the field in partner products in the first quarter of next year.
AMD also updated its forecast for the data-center AI accelerator market.
The tech giant sees the total addressable market growing by a factor of 11 to more than $500 billion in 2028 from $45 billion in 2023. Its earlier estimate was $400 billion in 2027.
AMD CEO: Data center and AI 'significant growth opportunities'“
The data center and AI represent significant growth opportunities for AMD, and we are building strong momentum for our EPYC and AMD Instinct processors across a growing set of customers,” Su said in a statement.
TheStreet Pro's Helene Meisler reviewed the company's stock performance and told readers that "it is incredible when you sit back and realize that AMD has gone nowhere all year."
"It peaked in March, tried to rally this past summer, and now, with all the hoopla over its new AI whatever, it still can’t get to the summer high let alone the spring one," she said on Oct. 10.
AMD shares closed Friday at $167.89, up 2.3% on the day but down 1.8% on the week. The shares are up 13.9% on the year.
"It’s got some support here at $160, more down at $150," Meisler said. "It wouldn’t surprise me to see it remain in this sideways pattern between $150 and $180 for a while longer."
Investment firms issued research reports after the company's presentation.
Oppenheimer said that it viewed AMD's artificial intelligence day as "largely uneventful," noting that management recapped "already well understood" product road maps.
Discussions with investors reveal MI3XX family revenue expectations in 2025 around $10 billion, but Oppenheimer says actual sales could come closer to $8 billion, the analyst tells investors in a research note.
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