Cantor Keeps Overweight on AMD Despite Target Cut, Citing Strong AI Tailwinds

Advanced Micro Devices, Inc. (NASDAQ:AMD) is included among the 12 Best Long Term US Stocks to Buy Now.

On December 16, Cantor Fitzgerald cut its price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $300 from $350 while keeping an Overweight rating on the stock. The firm says the semiconductor index is set up to lead the broader market after beating the S&P 500 by about 30 points in 2025. Early momentum from the AI buildout is driving demand across computing, networking, memory, and chip equipment, according to the analyst.

Short-term cycles may send mixed signals, but the bigger picture still looks supportive. Cantor points to a steady macro backdrop and what it sees as exponential growth in AI infrastructure spending. That combination, in its view, supports staying long the SOX and keeping above-average exposure to AI-focused names into 2026.

At the company level, Advanced Micro Devices, Inc. (NASDAQ:AMD) has made real progress on software. The Nod.ai acquisition has helped strengthen its ROCm platform, with AMD reporting that downloads have jumped tenfold year over year. Software was a weak spot before, and this shows traction. External support is also lining up.

In October, AMD announced a partnership with OpenAI to supply six gigawatts of computing capacity. The deal also includes collaboration on control software, which could further improve AMD’s appeal to large customers.

Competition remains intense, especially from Nvidia. At its financial analyst day, Advanced Micro Devices, Inc. (NASDAQ:AMD) said it expects data center revenue to grow at a 60% compound annual rate through 2030. That would be a sharp step up from the 22% growth posted in the third quarter. Hitting that target would require major AI hyperscalers to adopt AMD’s full technology stack. It is possible, but it sets a high bar.

Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and builds high-performance computing, graphics, and AI technologies used across data centers, PCs, and emerging AI workloads.

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Disclosure: None.