Investment bank Seaport Global recently started coverage of chip maker Advanced Micro Devices, Inc. (AMD) with a $110 price target and a Buy rating. Seaport is upbeat about AMD’s ability to gain market share and its execution.
Surpassing Intel (INTC) and a Viable Challenger to Nvidia (NVDA)
Advanced Micro Devices, Inc. (AMD) recently overtook Intel in the data center space, due to its strong execution, according to Seaport.
What’s more, Advanced Micro Devices, Inc. (AMD) can challenge NVDA in the AI chip sector, the firm stated.
AMD’s AI chips are competitive with those of NVDA, but AMD hasn’t built related software and services offerings that are comparable to those of NVDA. Still, AMD is working on developing these systems, according to Seaport.
Assessing AMD’s Outlook in AI
AMD’s AI business is likely to grow slowly and steadily, Seaport believes.
The chip maker should focus on adhering to its plans on the AI front, rather than seeking to boost the revenue generated by its AI offerings in the shorter term, the investment bank believes.
The Recent Price Action of AMD Stock
In the last month, the stock has dropped 7.4%, while it’s down 19% in the last three months.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
This article is originally published at Insider Monkey
