Published: March 4, 2024 at 3:43 p.m. ET
Advanced Micro Devices Inc.’s management projects it will generate upwards of $3.5 billion in revenue this year from graphics processing units for the data center.
One Barclays analyst is feeling even more upbeat. Barclays’ Tom O’Malley expects AMD AMD will deliver about $4.5 billion in data-center GPU revenue this year, while raising the forecast for its associated MI300 artificial-intelligence chip “incrementally through the year.”
Further,…
Advanced Micro Devices Inc.’s management projects it will generate upwards of $3.5 billion in revenue this year from graphics processing units for the data center.
One Barclays analyst is feeling even more upbeat. Barclays’ Tom O’Malley expects AMD
AMD
will deliver about $4.5 billion in data-center GPU revenue this year, while raising the forecast for its associated MI300 artificial-intelligence chip “incrementally through the year.”
Further, O’Malley thinks AMD’s revenue for the category will roughly double in 2025, to hit $9.2 billion. With that target in mind, he now forecasts $5.94 in adjusted 2025 earnings per share for AMD — up from a prior $5.49 estimate — and raises his price target on the stock to $235.
AMD shares are up 2.9% in afternoon trading Monday, extending their sharp rally into a third session. The stock has gained more than 18% over the past three trading sessions, and the company crossed into $300 billion market-capitalization territory for the first time late last week.
While O’Malley has an overweight rating on AMD’s stock, Bernstein’s Stacy Rasgon reiterated his market-perform stance in a Monday report following a recent meeting with members of AMD’s management team.
The company’s chief technology officer “suggested that AMD has prioritized inference and believes they are at par with Nvidia on silicon while catching up on the software,” Rasgon said in a summary of the meeting. Inference occurs when AI systems make predictions based on inputs that are new to them.
“Overall, we believe AMD still is playing catch up, but can at least articulate a strategy on how they want and plan to gain some share in the inference space,” Rasgon concluded. “The argument remains though as to whether AMD’s presence will be material, or more along the lines of a second source in an attempt to keep their larger peer honest,” in a reference to Nvidia Corp.
NVDA
Rasgon acknowledged that even if AMD were to wind up as merely a second source to Nvidia, that “could be considered enough for now.” Still, he kept his market-perform stance and $140 target price on AMD shares.
See more:
AMD is worth $300 billion for the first time. These stats show its dramatic rise.
25 of the best-performing stocks in the S&P 500 appear to be better values than they were a year ago. Nvidia is one of them.
Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
