Stifel maintained a Purchase score and worth goal of $200 per share on AMD (NASDAQ:) in a notice Tuesday, regardless of the inventory’s underperformance relative to the broader market and competitor Nvidia.
Analysts acknowledge combined sentiment on AMD resulting from issues round future efficiency in AI, PC, and server markets. Nonetheless, the notice highlights three key drivers for AMD’s medium-term development:
AI Infrastructure Funding: Analysts see AMD benefiting from ongoing investments in AI infrastructure.
Continued x86 CPU Share Positive factors: Analysts anticipate AMD to proceed capturing market share within the x86 CPU market from its rivals.
AI-Pushed PC Refresh Cycle: The report anticipates an upcoming PC refresh cycle fueled by the adoption of AI applied sciences, which may benefit AMD’s processor gross sales.
Analysts’ confidence in these development drivers outweighs present market issues, main them to reiterate their Purchase suggestion for AMD.