Why Analysts Say They’re Bullish on AMD Stock After AI Event Disappointed

Superior Micro Gadgets (AMD) could have dissatisfied buyers with its Advancing AI occasion Thursday, however analysts mentioned they’re nonetheless bullish on the chipmaker’s progress prospects.

Whereas AMD unveiled a lot of new AI merchandise on the occasion, Jefferies analysts mentioned buyers could 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% achieve Friday.

Chasing Nvidia

Financial institution of America analysts mentioned AMD’s newest Intuition MI325X GPU “stays a full 12 months behind NVDA’s newest Blackwell, with no near-term catalyst to alter the dynamic.”

Jefferies analysts instructed AMD’s MI350 subsequent 12 months “would compete extra favorably” with Nvidia’s Blackwell, “leaving AMD chasing NVDA for now.”

Nonetheless, the analysts mentioned they imagine AMD’s new AI chips may nonetheless “drive additional share beneficial properties” as firms race to construct out their AI infrastructure, with “sufficient demand to go round.”

Jefferies maintained its “purchase” ranking for the inventory and worth goal of $190, a greater than 13% premium over Friday’s closing worth of $167.89. Financial institution of America additionally maintained a “purchase” ranking with a worth goal of $180. About three-quarters or 13 of the opposite 17 analysts tracked by Seen Alpha additionally held “purchase” or equal scores for the inventory as of Friday, with a consensus goal of $192.13.