Hedge funds are buying these two big tech stocks while selling two rivals
Investing.com - Piper Sandler has reiterated an Overweight rating and $280.00 price target on Advanced Micro Devices (NASDAQ:AMD) following the company’s analyst day in New York City. AMD currently trades at a P/E ratio of 127.75 with a market capitalization of $386.69 billion, according to InvestingPro data.
The research firm expressed optimism about AMD’s new business model, which targets a $1 trillion silicon total addressable market (TAM) by 2030, representing a 40% compound annual growth rate (CAGR) compared to its previous goal of $500 billion by 2028. This ambitious target aligns with AMD’s recent performance, as InvestingPro data shows the company achieved 31.83% revenue growth over the last twelve months.
Piper Sandler was impressed by management’s projection of $20 earnings per share (EPS) by 2030, which likely includes revenue from the recently announced OpenAI partnership. AMD also forecasted an 80%+ data center AI revenue CAGR over the next 3-5 years, with near-term growth expected to exceed that pace. The company’s current diluted EPS stands at $1.91, with analysts forecasting $3.98 for fiscal year 2025.
The firm noted positively on AMD’s near-complete Helios rack solution. While AMD will not sell the rack solution directly, it will implement most key components within the rack including GPU, CPU, networking, and DPU.
Piper Sandler concluded it was "very pleased" with AMD’s presented roadmap and remains "optimistic on the company’s outlook" following the analyst day presentation.
In other recent news, Advanced Micro Devices (AMD) has been the focus of multiple analyst updates and projections. UBS has maintained a Buy rating with a price target of $300, citing AMD’s new financial model that achieved an expected earnings per share (EPS) of over $20. Barclays also reiterated an Overweight rating with a $300 price target, highlighting AMD’s competitive position in the artificial intelligence market and its updated long-term financial targets. Meanwhile, Bernstein reiterated a Market Perform rating with a $200 price target, noting that AMD’s recent investor day presentation met high expectations, although the firm described the company’s 3-5 year targets as somewhat aggressive. Melius Research raised its price target to $380 from $300, maintaining a Buy rating due to AMD’s positive margin guidance and expectations for over 35% revenue growth in the coming years. BofA Securities also reiterated a Buy rating with a $300 price target after AMD outlined a vision for a total AI silicon market exceeding $1 trillion by 2030. These developments reflect a consensus among analysts that AMD is positioned for significant growth, especially in the AI sector.
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