Key Takeaways
- Superior Micro Units might have disillusioned buyers with its Advancing AI occasion Thursday, however analysts mentioned they’re nonetheless bullish on the chipmaker’s progress prospects.
- AMD shares fell Thursday after the corporate unveiled its newest AI chips with out elevating its outlook or asserting new partnerships as some buyers had anticipated.
- Nevertheless, Jefferies analysts mentioned they consider AMD’s new AI chips may nonetheless drive good points for the inventory with “sufficient demand to go round.”
Superior Micro Units (AMD) might have disillusioned buyers with its Advancing AI event Thursday, however analysts mentioned they’re nonetheless bullish on the chipmaker’s progress prospects.
Whereas AMD unveiled a variety of new AI merchandise on the occasion, Jefferies analysts mentioned buyers might have been in search of clearer indicators of competitors with Nvidia (NVDA) and a brand new buyer announcement, in addition to “the potential for a increase of the AI steering to $5 billion, which is probably going now left to earnings.”
Shares of AMD fell 4% Thursday after the occasion, although they recovered a few of these losses with a simply over 2% acquire Friday.
Chasing Nvidia
Financial institution of America analysts mentioned AMD’s newest Intuition MI325X GPU “stays a full yr behind NVDA’s newest Blackwell, with no near-term catalyst to vary the dynamic.”
Jefferies analysts recommended AMD’s MI350 subsequent yr “would compete extra favorably” with Nvidia’s Blackwell, “leaving AMD chasing NVDA for now.”
Nevertheless, the analysts mentioned they consider AMD’s new AI chips may nonetheless “drive additional share good points” as corporations race to construct out their AI infrastructure, with “sufficient demand to go round.”
Jefferies maintained its “purchase” score for the inventory and value goal of $190, a greater than 13% premium over Friday’s closing value of $167.89. Financial institution of America additionally maintained a “purchase” score with a value goal of $180. About three-quarters or 13 of the opposite 17 analysts tracked by Seen Alpha additionally held “purchase” or equal rankings for the inventory as of Friday, with a consensus goal of $192.13.