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TD Cowen maintained its Buy rating and $115.00 price target on Advanced Micro Devices (NASDAQ:AMD), aligning with the broader analyst consensus of 1.84 (Buy), following the company’s Advance AI event. With a market capitalization of $188 billion and recognition as a prominent player in the semiconductor industry according to InvestingPro, AMD continues its steady progress in positioning itself as the primary merchant alternative to NVIDIA (NASDAQ:NVDA) in the expanding artificial intelligence market.
The event showcased AMD’s new MI350 series chips, ROCm 7 software platform, and previewed the upcoming MI400 "Helios" - the company’s first rack-scale solution. While no financial updates were provided during the presentation, TD Cowen noted that AMD is "laying important groundwork to more effectively participate in the AI TAM." The company’s strong financial foundation is evident in its impressive 21.7% revenue growth over the last twelve months and robust cash flow metrics, as revealed by InvestingPro’s comprehensive analysis.
AMD’s strategic shift toward multi-generational, comprehensive system solutions was highlighted as a positive development, enabled by its recent ZT Systems acquisition. The company also demonstrated its commitment to AI software development through numerous acquisitions aimed at supporting large-scale cluster workloads and model development solutions.
OpenAI CEO Sam Altman made a cameo appearance at the event, underscoring AMD’s efforts to build key partnerships within the AI ecosystem. TD Cowen characterized AMD as a "show-me story," but expressed confidence in the company’s direction.
The research firm observed "no slowdown in the AI race," with AMD’s efforts to create and capture value in artificial intelligence continuing "unabated" despite the dynamic market conditions. According to InvestingPro, AMD demonstrates strong financial health with a "GOOD" overall rating, supported by 14+ additional ProTips and detailed metrics available to subscribers. Investors seeking deeper insights into AMD’s valuation and growth potential can access the comprehensive Pro Research Report, part of InvestingPro’s analysis of 1,400+ top US stocks.
In other recent news, Advanced Micro Devices (AMD) has been in the spotlight with several key developments. The company announced the official launch of its Instinct MI350 Series AI accelerator chips, which are now in production and expected to begin volume revenue ramp in the third quarter. Oracle (NYSE:ORCL) is set to be among the first to adopt the MI355X-powered rack-scale solution, followed by other major players like Meta (NASDAQ:META), OpenAI, and Microsoft (NASDAQ:MSFT). Analyst firms have responded to these announcements with varied ratings: UBS maintained a buy rating with a $150.00 price target, and Benchmark reiterated a buy rating with a $170.00 target, citing AMD’s competitive AI roadmap. Stifel also upheld a buy rating, emphasizing AMD’s focus on AI growth potential, while Cantor Fitzgerald maintained an Overweight rating with a $140.00 price target. Bernstein, however, reiterated its Market Perform rating, noting the event lacked major surprises. AMD has projected the AI accelerator total addressable market to exceed $500 billion by 2028, reflecting increased growth expectations. The company also previewed its next-generation MI400 GPUs and Helios AI rack solution, with a focus on inference workloads expected to drive market growth. Despite these advancements, some analysts noted the absence of new customer announcements as a factor influencing investor sentiment.
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