Hedge funds are buying these two big tech stocks while selling two rivals
Investing.com - Melius Research raised its price target on AMD (NASDAQ:AMD) to $380 from $300 on Wednesday, while maintaining a Buy rating on the semiconductor company’s stock. The new target represents a 60% upside from AMD’s current price of $237.52, with the stock already delivering an impressive 96.64% return year-to-date.
The research firm cited AMD’s margin guidance as "the real positive surprise" in its recent financial outlook, alongside expectations for 35%+ revenue growth CAGR in the coming years. This projection aligns with AMD’s strong recent performance, as the company has already achieved 31.83% revenue growth over the last twelve months.
Melius projects that AMD is targeting a significant share of the AI semiconductor and networking markets, potentially reaching $150 billion in revenue by 2030.
The firm believes AMD appears to be positioning itself for a $1 trillion market capitalization with these growth aspirations, though it notes successful execution and OpenAI funding will be necessary to achieve these goals.
Melius analysts consider a 10%+ market share "realistic" for AMD in these growing segments, prompting the firm to raise its 2027-2028 estimates alongside the higher price target.
In other recent news, AMD has been the focus of several analyst updates following its 2025 Financial Analyst Day. BofA Securities has reiterated its Buy rating and maintained a price target of $300, highlighting AMD’s expanded vision for the artificial intelligence market, with a projected total addressable market of over $1 trillion by 2030. Similarly, Jefferies has also maintained its Buy rating with a $300 price target, emphasizing AMD’s positive outlook across all business segments. Evercore ISI raised its price target for AMD to $283 from $270, citing increased confidence in the company’s MI450 product ramps and market share gains. On a different note, Goldman Sachs has kept a Neutral rating with a $210 price target, acknowledging AMD’s long-term financial targets that surpass Street expectations, particularly in the Datacenter segment. These updates reflect a broad consensus among analysts about AMD’s potential in the AI sector, with varying degrees of optimism regarding its future performance.
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