Evercore ISI on AMD (AMD): 'We're Buyers'

Evercore ISI analyst Mark Lipacis reiterated an Outperform rating and $126.00 price target on AMD (NASDAQ: AMD)

THe analyst comments "We’re Buyers of AMD post a rev beat/beat EPS beat/miss print. AMD’s suggestion that its DC GPU business (Instinct) grows by over 60% QQ to $1.6bn and strong DD in 2025 is consistent with our AI channel checks (here) that near-term hyperscalers are deploying Instinct for inferencing workloads due in part to supply shortage of accelerators as well as improvements in its ROCm software stack, and long-term hyperscalers want to make AMD a larger part of internal workloads. The 2H25 ramp of Instinct assumes its 3rd gen solution (MI350) drives the inflection, which would be consistent with the inflection of its server CPU product line (EPYC) which also saw the inflection with its 3rd gen solution, Milan. Our sense is that investors have low expectations (survey here, Fig 24-25). We increase our estimates and reiterate OP."

For an analyst ratings summary and ratings history on AMD click here. For more ratings news on AMD click here.

Shares of AMD closed at $98.62 yesterday.

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