Melius Maintains Buy on AMD, Citing Multi-Year Growth Visibility

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the AI Stocks Investors Are WatchingOn November 12, Melius Research raised its price target on the stock to $380 from $300 while maintaining a Buy rating.

The firm maintains a positive outlook on the stock as it sees AMD on a realistic path to capture 10% of the AI market share and solid visibility into multi-year earnings growth.

Melius stated how the margin guide for AMD has been the “real positive surprise” in its recent financial outlook. Meanwhile, its 35%+ revenue growth CAGR “backs a double-digit share in AI semis/networking” alongside a “$150B or so in revenue by 2030.”

According to the firm, AMD is striving for a significant share of the $1T market cap with these growth aspirations. While it may need OpenAI funding and “a lot of” execution to achieve the goal, a 10% market share seems more realistic, the analysts note.

“AMD seems to clearly be targeting a $1T market cap with these aspirations. Although there is a lot of execution and OpenAI funding needed to get there, a share of 10%+ seems realistic. We are raising our 2027–2028 estimates and target to $380 from $300. Reiterate Buy.”

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.

While we acknowledge the risk and potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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