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AMD stock target raised at Wells Fargo on broadening TAM for Datacenter business

Published 30/03/2023, 15:14
Updated 30/03/2023, 15:14
© Reuters

© Reuters

By Senad Karaahmetovic 

Wells Fargo analysts raised the price target on Advanced Micro Devices (NASDAQ:AMD) stock to $120 per share (from $85) to reflect the company's broadening datacenter TAM (total addressable market).

"While AMD's EPYC server CPU momentum is to remain the primary focus/growth driver through 2023, as we look into 2024+, AMD's ability to participate in the broader (AI-driven) datacenter silicon market will likely become an increasingly important part of our positive investment thesis," the analysts wrote in a note they sent to clients.

They now expect the Datacenter GPU to increase from ~$10.3B in 2022 to $33.8B by 2027, growing at a +27% CAGR.

"In addition to AMD's next-gen IMI300 APU (CPU + GPU) commencing 2H2023 volume ship into the El Capitan supercomputer, we think MI300 adoption at some hyperscale cloud customers could materialize into late 2023 / 2024," the analysts wrote.

AMD shares are up over 3% today.

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