Hedge funds are buying these two big tech stocks while selling two rivals
Investing.com - TD Cowen has reiterated its Buy rating and $290.00 price target on AMD (NASDAQ:AMD) following a call with the company’s CFO Jean Hu and CVP Financial Strategy & IR Matt Ramsay.
The firm expressed confidence in AMD’s ability to capture value in the expanding artificial intelligence market, though noted the company still needs to prove itself as it ramps up significant AI buildouts. With a market capitalization of $401.82 billion, AMD has established itself as a prominent player in the semiconductor industry, though InvestingPro analysis indicates the stock is currently trading above its Fair Value, with a P/E ratio of 130.35.
AMD’s management clarified that its $1 trillion AI total addressable market (TAM) specifically includes GPUs, CPUs, and server-side networking components such as DPUs and NICs, but excludes switches. The TAM includes limited China opportunity, while AMD’s revenue targets of over 60% CAGR in Data Center revenue do not factor in China due to geopolitical uncertainties. This ambitious growth target comes as AMD has already demonstrated strong revenue growth of 31.83% over the last twelve months, reaching $32.03 billion.
The company has outlined a path to overall revenue growth exceeding 35% over the next 3-5 years, primarily driven by Data Center growth and more than 10% growth in its "core business" segments including Client, Gaming, and Embedded.
While simple projections suggest total revenue growth could exceed 40% by 2030, management indicated that individual segment targets represent business unit commitments, with corporate-level forecasts incorporating some conservatism due to dynamic market conditions.
In other recent news, Advanced Micro Devices (AMD) has been the focus of several analyst updates following its recent events. Benchmark reiterated its Buy rating with a $325 price target, emphasizing AMD’s aggressive revenue growth forecasts and increased market share estimates, particularly in the data center sector fueled by artificial intelligence demand. Cantor Fitzgerald maintained an Overweight rating and a $350 price target, highlighting AMD’s long-term financial model projecting a revenue compound annual growth rate of over 35% and robust margins through 2030. Truist Securities also kept its Buy rating, noting AMD’s potential to grow earnings per share at a 45% compound annual growth rate through 2030. TD Cowen echoed a positive outlook, reiterating a Buy rating with a $290 price target, aligning with their optimistic projections for the data center silicon market. Stifel reaffirmed its Buy rating with a $280 price target, praising AMD’s long-term strategy focused on technology leadership and software development. These developments underscore the strong confidence analysts have in AMD’s growth trajectory and market positioning.
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