Hedge funds are buying these two big tech stocks while selling two rivals
Investing.com - TD Cowen has reiterated its Buy rating on Advanced Micro Devices (NASDAQ:AMD) with a price target of $290.00, maintaining its positive outlook on the semiconductor company’s growth trajectory. AMD shares currently trade at $258.57, with a market capitalization of $418.75 billion. According to InvestingPro data, the stock is trading near its 52-week high of $267.08.
The firm’s analysis points to a potential $1 trillion data center silicon total addressable market (TAM) by 2030, which aligns with TD Cowen’s silicon-only estimates for the sector.
TD Cowen believes AMD has significant earnings potential, suggesting that reasonable growth and market share assumptions within the AI sector, combined with continued expansion of AMD’s core business, could demonstrate earnings power exceeding $20 per share within four years. This outlook is supported by AMD’s strong revenue growth of 31.83% over the last twelve months, with analysts expecting continued sales growth this year.
The firm notes that AMD stock is currently trading at approximately 10 times that projected earnings figure, suggesting potential undervaluation at current levels. However, InvestingPro data shows AMD currently trades at a P/E ratio of 127.75, which is high relative to near-term earnings growth. InvestingPro’s Fair Value assessment provides additional insight into whether AMD is currently overvalued or undervalued.
While TD Cowen acknowledges that AMD has not announced any new major customers and that successful execution remains necessary, the firm believes AMD possesses the necessary tools to succeed in what it describes as "the most important market in tech." With a beta of 1.91, AMD shows higher volatility than the market, but has delivered impressive returns with a 119.68% price increase over the past six months. For deeper analysis on AMD and 1,400+ other stocks, comprehensive Pro Research Reports are available on InvestingPro.
In other recent news, Advanced Micro Devices (AMD) has captured investor attention with several notable developments. The company recently held its first analyst day in three years, where it announced an ambitious revenue growth forecast, driven by a doubling of its estimated data center total addressable market due to increasing demand for artificial intelligence. AMD also projected earnings per share exceeding $20, surpassing previous Wall Street forecasts. Following this event, Benchmark reiterated its Buy rating with a price target of $325. Similarly, Stifel maintained its Buy rating and $280 price target, emphasizing AMD’s focus on technology leadership, software development, and intellectual property. Cantor Fitzgerald also reiterated an Overweight rating with a $350 price target, highlighting AMD’s financial model projecting a revenue compound annual growth rate of over 35% through 2030. Morgan Stanley maintained an Equalweight rating and a $260 price target, citing uncertainty in AMD’s AI market share prospects. Additionally, recent data from Mercury Research indicated that AMD gained market share in the microprocessor market during the third quarter of 2025, while Intel’s share declined. This growth was supported by stronger-than-expected shipments in the server and notebook CPU segments.
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