Stifel maintained a Buy rating and price target on AMD (NASDAQ:) stock at $200 per share on Tuesday, despite the stock’s underperformance relative to the broader market and rival Nvidia.
Analysts have mixed sentiment on AMD due to concerns about future performance in the AI, PC and server markets. However, the note highlights three key drivers for AMD’s mid-term growth:
Investing in artificial intelligence infrastructure. Analysts see AMD benefiting from continued investments in artificial intelligence infrastructure.
Continued growth in the share of x86 processors. Analysts expect AMD to continue to gain market share in x86 processors from its competitors.
AI-driven PC upgrade cycle. The report predicts an upcoming PC refresh cycle driven by the introduction of artificial intelligence technologies that could benefit AMD processor sales.
Analysts’ confidence in these growth drivers outweighs current market concerns, leading them to reiterate a Buy recommendation on AMD shares.