AMD stock fell sharply in early trading, extending its decline in the year’s second half.
The chipmaker’s shares have dropped about 45% since hitting an all-time high last spring, erasing approximately $140 billion in market value.
Despite the downturn, one Wall Street analyst sees significantly more upside potential than downside risk as we approach 2025.
On Monday, Northland analyst Gus Richard named AMD one of his top picks for 2025. He reiterated a $175 price target and highlighted the potential for even more significant gains.
Richard pointed out AMD’s AI strategy, powered by its product roadmap and total cost of ownership advantages.
He noted that the company’s server and client CPU offerings consistently outperform its competitors.
As challenges in the embedded and gaming sectors subside, Richard expects AMD to continue growing its market share in AI GPUs, server CPUs, and PC clients.
He projects AMD’s AI revenue to soar 83% year-over-year, reaching approximately $9.5 billion by 2025.
Moreover, in AMD’s data center segment, Richard forecasts a 26% growth in non-AI revenue to reach $7.7 billion, with further market share gains on the horizon.
He asserts that AMD’s Torino chip outperforms Intel Corporation’s Granite Rapids in most workloads.
Furthermore, Richard believes AMD will gain market share from Intel in the personal computer sector—an area he considers undervalued in AMD’s AI-focused investment thesis.
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