Advanced Micro Devices (AMD 7.44%) stock is making gains in Monday's trading. The semiconductor company's share price was up 5.7% as of 10:45 a.m. ET.
NASDAQ: AMD
Key Data Points
AMD stock is gaining ground today following bullish coverage from Rosenblatt. The firm named the chip stock as one of its top investment ideas for the first half of 2025.
AMD gains on bullish analyst coverage
Before the market opened today, Rosenblatt published new coverage on AMD stock. The firm gave a buy rating on the stock and issued a one-year price target of $250 per share. As of this writing, that would imply additional upside of roughly 100%.
Rosenblatt's analysts think that AMD's expanding share in the markets for central processing units (CPUs) and graphics processing units (GPUs) will help power big gains for the stock. The team sees a strong outlook for the semiconductor specialist's Epyc CPUs in the server and data center segment, and it also expects strong performance from the company's M1350 and M1400 GPUs.
What comes next for AMD stock?
While Nvidia and many other artificial intelligence (AI) stocks have posted massive gains across this year's trading, AMD's performance has been relatively soggy. Despite today's gains, AMD stock is down roughly 15% across 2024 and is still trading in a range close to its 52-week low. With shares underperforming this year, the stock has recently been getting attention from investors betting on a potential rebound trade.
Even though AMD's data center segment has been posting explosive growth, the results have come in below the expectations of some analysts. Investors are also worried about whether the company will be able to sustain momentum in the space. Thus far, the company doesn't appear to be catching up to Nvidia in terms of advanced GPU performance for artificial intelligence applications.
On the other hand, the demand outlook for AI infrastructure continues to look quite strong -- and the rising tide of spending in the space could continue to lift AMD's boat even though Nvidia's processors continue to be the go-to choice for leading tech companies. The overall AI revolution is also likely still in very early innings. So while cyclical and competitive risks are present, AMD stock could be a worthwhile portfolio addition at current prices.
