According to a recent report, Advanced Micro Devices Inc. is poised to increase its market share in the lucrative artificial intelligence sector.
Roth MKM analyst Suji Desilva is bullish on AMD’s potential to capitalize on the AI trend. Desilva initiated coverage on the stock late Monday with a buy rating and a price target of $125.
Desilva highlighted the capabilities of AMD’s MI300A for high-performance AI inference and mid-range training. He emphasized the seamless integration of advanced graphics-processing-unit capabilities with multiple Zen-based central processing unit cores.
The upcoming “MI300X device with deep CDNA-based CPU” is well-suited for complex AI training tasks, particularly those involving large language models (LLMs). Desilva praised the device’s enhanced memory density and data capacity.
Furthermore, Desilva noted that AMD’s Genoa processor boasts specifications tailored for AI workloads, positioning the company to capture a larger market share.
While Broadcom’s acquisition of VMware faces uncertainty, Desilva remains optimistic about the company’s growing assets.
In a broader context, Desilva pointed out AMD’s expanding presence in the data center market, anticipating further growth as the company gains traction with corporate customers.
Despite the sluggishness in the computer market post-pandemic, AMD is expected to benefit from a resurgence in both the sector and the entertainment industry. Desilva foresees positive developments in these segments over the coming quarters, despite subdued consumer demand.
On a positive note, AMD shares surged by 4.2% in morning trading on Tuesday, outperforming the Nasdaq Composite Index and the PHLX Semiconductor Index, which were up 2.2% and 3.5% respectively.
