TMC shares dip as Iceberg Research rebuts Ives upgrade
Advanced Micro Devices (NASDAQ:AMD) stock fell approximately 2 points to $116.23 on Wednesday in a modestly up market following the company’s AI technology event, which featured product roadmap updates but lacked major new customer announcements. According to InvestingPro data, AMD’s stock movements have been notably volatile, with the company maintaining a beta of 1.99.
Bernstein SocGen Group maintained its Market Perform rating and $95.00 price target on AMD, noting the event delivered "not bad but no huge surprises." With analyst targets ranging from $95 to $200 and an overall "GOOD" financial health score from InvestingPro, AMD continues to show strong fundamentals. The firm highlighted AMD’s announcements including details on upcoming GPUs with MI350 in production now for Q3 availability, MI400 planned for next year, and MI500 targeted for 2027.
AMD revealed it now sees the 2028 AI accelerator total addressable market exceeding $500 billion, up from its previous $500 billion estimate, and projected inference computing would grow at more than an 80% compound annual growth rate through that period. The company did not provide updates to its near-term financial outlook during the presentation.
The event featured testimonials from existing partners including Meta (NASDAQ:META), Oracle (NYSE:ORCL), Microsoft (NASDAQ:MSFT), Humain, and XAI, but did not announce any new major GPU customers as some investors had hoped. AMD also detailed upcoming EPYC server CPUs with Venice expected next year and Verano in 2027, alongside the launch of ROCm 7 software.
The stock’s decline occurred despite the broader semiconductor index rising approximately 0.3% and competitor NVIDIA (NASDAQ:NVDA) gaining 1.5%, representing what Bernstein described as a typical "sell-the-news" response to AMD events, particularly given the absence of major surprises. With a market capitalization of $188.5 billion and impressive revenue growth of 21.7% over the last twelve months, AMD remains a prominent player in the semiconductor industry. Discover more comprehensive insights and 12 additional ProTips with an InvestingPro subscription.
In other recent news, Advanced Micro Devices (AMD) announced the official launch of its Instinct MI350 Series at its Advancing AI event, with the new AI accelerator chips now in production and shipping to lead partners. Benchmark reiterated its Buy rating on AMD, maintaining a $170 price target, citing the company’s competitive AI roadmap. Stifel also maintained its Buy rating and $132 price target, highlighting AMD’s focus on inference workloads and its expanded AI roadmap. Cantor Fitzgerald reiterated an Overweight rating and a $140 price target, noting the launch of AMD’s ROCm 7 software stack and the preview of its Helios AI platform. UBS kept its Buy rating with a $150 price target, emphasizing AMD’s structural advantages in HBM memory bandwidth. The company has increased its market size projection, forecasting the AI accelerator total addressable market to exceed $500 billion by 2028. AMD’s plans include a next-generation MI400 GPUs launch by mid-2026 and a commitment to an annual GPU architecture release cycle through the MI500 Series by 2027. Industry leaders such as Oracle, OpenAI, and Microsoft are among the first to adopt AMD’s new solutions.
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