AMD’s AI products seem well designed for the current hot areas of that market, an analyst says
Advanced Micro Devices Inc. can pick up share in the enticing artificial-intelligence market, a new bull says.
Roth MKM analyst Suji Desilva is upbeat about AMD’s AMD, +2.65% opportunity to capitalize on the AI wave, one reason why he initiated the stock with a buy rating and $125 price target late Monday.
“By closely integrating advanced [graphics-processing-unit] capability with multiple Zen-based [central-processing-unit] cores, we believe AMD’s MI300A is very well designed for high performance AI inference and mid-range training,” Desilva wrote.
Further, AMD’s “MI300X chip with dense CDNA-based CPU
capability, high memory density, and high data throughput is well suited for newer generative AI training workloads running large language models (LLMs),” he said.
The company’s Genoa processor also features upgrades to its specifications “that are well suited for AI workloads” and position the company to win market share, according to Desilva.
Looking more broadly, he noted that AMD had been picking up share in the market for data-center infrastructure, and he sees further gains ahead as AMD builds momentum among enterprise customers.
Though the PC market has been sluggish in the postpandemic world, AMD will start to benefit from a rebound in that category and in the gaming business. “While overall consumer demand has remained muted, we nonetheless expect these segments to exhibit a recovery progression over the next several quarters,” he wrote.
AMD shares were up 4.2% in morning trading Tuesday on a strong day for the Nasdaq Composite Index COMP, which is up 2.2%, and for the PHLX Semiconductor Index SOX, which is up 3.5%.