CNBC AI News | July 11, 2024 – Analysts are increasingly bullish on AMD’s AI chip portfolio, upgrading the stock to a ‘buy’ rating and lifting the price target to $200, citing the firm’s MI350 chips as a strong competitor to Nvidia’s Blackwell platform. The significant price hike—equivalent to a 40% upside from recent levels—reflects growing confidence in AMD’s position in the high-stakes AI hardware market.
HSBC analysts detailed their optimism in a latest report, highlighting AMD’s strategic advancements showcased at the June Advancing AI event. The chipmaker unveiled its Instinct MI350 series accelerators and outlined a forward-looking roadmap for future generations like the MI400 and MI450 series, reinforcing its long-term growth narrative in artificial intelligence.
Key to the upgrade is the perceived competitive edge of the MI350 series, which analysts now foresee as rivaling Nvidia’s Blackwell in performance. They expressed particular optimism around its pricing power, with the MI355 model expected to command an average selling price of $25,000—a substantial $10,000 increase over prior estimates. This, combined with the upcoming MI400 series launching in 2026, signals fresh growth catalysts that could redefine AMD’s revenue dynamics.
HSBC projects AMD’s AI chip revenue to soar to $15.1 billion by 2026, up significantly from an earlier forecast of $9.6 billion. Such bullish stances have already translated into market momentum: AMD’s stock climbed 4.15% on July 10th, closing at $144.16—nearly double its recent lows—as investors welcomed the enhanced outlook.
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