Piper Sandler, Roth KM, and Citi remain bullish on AMD stock, maintaining their ‘Buy’ ratings.
Shares of Advanced Micro Devices Inc (AMD) rose nearly 3% on Friday after the company unveiled a full line of new artificial intelligence (AI) chips — including the Instinct MI325X designed to compete against Nvidia Corp’s (NVDA) upcoming Blackwell chips— at its AI event late Thursday.
While the modest stock movement reflects investor caution, Wall Street remains optimistic. Piper Sandler raised the firm’s price target to $200 from $175, maintaining an ‘Overweight’ rating. In its research note, the financial analyst said it is “enthused” about the company’s potential, particularly around its data center and new AI chip. It feels that AMD will have a “significant share in this market.”
Similarly, Roth KM maintained its ‘Buy’ rating with a price target of $200, calling AMD an “opportunity in a broadly coordinated AI infrastructure push.”
However, Citi has adopted a more cautious tone. While maintaining a ‘Buy’ rating on the stock with a price target of $210, it described AMD’s AI event as a ‘mixed bag’ of news. The firm believes that despite the advantages of AMD’s MI325X chip, Nvidia will continue to dominate, retaining 90% of the AI GPU market.
Retail sentiment on Stocktwits entered ‘extremely bullish’ (77/100) territory from ‘bullish’ a day ago with message volumes remaining ‘extremely high’ (81/100). Investors on the platform are looking to ‘buy the dip’ ahead of AMD’s third-quarter earnings results on Oct. 29.
Wall Street estimates that AMD will announce earnings per share (EPS) of $0.92. Investors are hoping the company will continue its streak of beating analyst estimates from the previous two quarters.
Despite AMD’s bold announcement, Nvidia’s share price saw little movement today. However, retail sentiment on Stocktwits remains bullish, with minimal chatter suggesting that investors are largely unfazed by AMD’s new chip.
AMD’s share price has gained nearly 22% on a year-to-date basis while Nvidia stock has returned over 180% during the period.
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