Advanced Micro Devices (NASDAQ: AMD) stock climbed during intraday trading Thursday following a bullish endorsement from Piper Sandler analysts.
Piper Sandler analysts have designated Advanced Micro Devices (AMD) as their top large-cap pick for the latter half of 2024, following encouraging insights assembled from discussions with the chipmaker’s management in Europe last week.
Reasons for Endorsement
The investment bank admired AMD’s strategic vision and competitive positioning, particularly lauding the prospects of its MI300 accelerator series, which it expects to surpass $4 billion in revenue this year.
AMD, known for its advancements in AI chip manufacturing, also plans to launch several new products, including the MI325 later in 2024 and the MI350 in 2025. These chips will feature next-generation HBM3E memory, with the MI350 also incorporating CDNA4 architecture and a 3nm process node, positioning it competitively against the Blackwell architecture. Looking further ahead, AMD plans to introduce the MI400 in 2026, targeting competition with Rubin architecture.
Moreover, the analysts highlighted AMD’s strong customer base, currently exceeding 100 clients, which includes tech giants like Microsoft (NASDAQ: MSFT), Meta (NASDAQ: META), and Oracle (NYSE: ORCL). AMD has also successfully deployed ChatGPT’s latest model with a trillion parameters, indicating its robust capabilities in the AI accelerator space.
In addition to AI chips, Piper Sandler foresees positive developments for AMD’s server and PC businesses. The analysts noted,
“These tailwinds coupled with embedded hitting bottom in the June quarter; we view AMD as having bright prospects moving into the back half of the year.”
They added,
“As such, we are making AMD a top pick in the large-cap space as the company currently has 100+ customers in the AI accelerator space, with most of them ramping in 2H.”
Finally, Piper Sandler underscored expectations for improved GPU supply to meet burgeoning demand and highlighted the company’s attractive valuation compared to peers in the computing sector.
AMD (NASDAQ: AMD) Stock Price Action
On Thursday, AMD stock jumped 4.62%, closing at $161.78, marking a 0.96% increase for the week. The trading volume was 92,800,911 shares, significantly higher than the average daily volume of 54.46 million.
