Aditya Raghunath
3 min read
In This Article:
Advanced Micro Devices (AMD) surged nearly 7% on Tuesday, June 24 following an upgrade from investment firm CFRA, which sees the semiconductor giant positioned to challenge Nvidia’s (NVDA) AI dominance by 2026.
CFRA analyst Angelo Zino upgraded AMD stock from a “Buy” to a “Strong Buy” rating while raising his price target from $125 to $165, citing multiple catalysts that could drive revenue growth. The upgrade centers on AMD’s upcoming MI400x launch and transition to rack-scale solutions, which Zino believes will help “close the competitive gap” with Nvidia in the lucrative AI accelerator market.
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AMD’s expanding customer base is another key factor supporting the bullish outlook, with major players such as Oracle (ORCL) and OpenAI now utilizing the chip maker’s accelerators. Moreover, AMD’s progress with its open-source ROCm AI software stack strengthens its competitive position against Nvidia’s CUDA platform.
The timing appears favorable as the GPU server market is expected to recover sharply in Q4, providing AMD with revenue upside. Additional tailwinds include emerging sovereign AI opportunities and the potential for AMD to return to the Chinese market.
AMD is a formidable force in the rapidly evolving AI landscape through strategic partnerships, accelerated product development, and comprehensive system-level solutions. Its recent developments showcase a multi-pronged approach to capturing the AI infrastructure market.
AMD’s MI350 series represents a significant leap forward, delivering 35 times the performance improvements in inference workloads compared to previous generations. AMD maintains its annual product cadence, with the MI400 series planned for 2026, featuring rack-scale solutions designed from the ground up. CEO Dr. Lisa Su emphasized AMD’s commitment to providing flexible, programmable solutions as AI algorithms continue evolving rapidly.
AMD is expanding beyond hyperscaler partnerships to target enterprise customers directly. Mark Papermaster, AMD’s CTO, highlighted the growing interest in on-premises AI deployments among enterprises in sectors such as healthcare and drug discovery, where maintaining proprietary data control remains paramount. This represents a market expansion opportunity as enterprises rationalize their AI investments.
