Hedge funds are buying these two big tech stocks while selling two rivals
Investing.com - Deutsche Bank has reiterated its Hold rating on AMD (NASDAQ:AMD) stock with a price target of $250.00, following the company’s analyst meeting. According to InvestingPro data, AMD is currently trading at $237.52, with analysts setting targets ranging from $134.20 to $380.00. The chipmaker’s stock appears overvalued based on InvestingPro’s Fair Value assessment.
The chipmaker hosted what Deutsche Bank analyst Ross Seymore described as a "very constructive and AI/DC-driven analyst meeting," where AMD significantly raised all key financial target metrics compared to those last provided in 2022. The company has demonstrated strong momentum, with InvestingPro data showing impressive returns of 119.68% over the past six months and 96.64% year-to-date.
AMD doubled its AI silicon total addressable market projection to $1 trillion by 2030 and increased its revenue compound annual growth rate target to more than 35%, with AI growing over 80%, data center over 60%, and core businesses over 10%.
The company also provided profitability guidance, targeting gross margins in the 55-58% range and operating margins above 35%, which Deutsche Bank noted was "better-than-feared" to accompany the projected revenue growth.
For its data center GPU product line, AMD reiterated significant ramps in MI355 processors now, with a meaningful acceleration expected in the second half of 2026 as recently announced partnerships with OpenAI and Oracle launch, with AMD expecting to achieve "meaningful double-digit market share" over time.
In other recent news, AMD has outlined an ambitious growth strategy, targeting a more than 35% revenue compound annual growth rate over the next three to five years. The company anticipates significant growth in its data center business, projecting a 60% CAGR, fueled by its AMD Instinct MI350 Series GPUs. In addition, AMD plans to launch new systems with Instinct MI450 Series GPUs by the third quarter of 2026 and the MI500 Series in 2027.
Meanwhile, TD Cowen has raised its price target for AMD to $290, citing solid progress and a data center GPU inflection point. Benchmark has also increased its price target to $325, highlighting AMD’s expanding role in the AI data center market. Despite some fluctuations in share prices, Benchmark emphasized AMD’s strong record results and attractive outlook. Truist Securities adjusted its price target to $279, describing AMD’s recent financial results as having "modest imperfections" but supporting a positive investment thesis.
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