Bernstein sees something in AMD beyond Nvidia’s shadow

Advanced Micro Devices (AMD)'s AI communicative mightiness beryllium getting a batch bigger successful a spot investors haven't been watching intimately enough.

According to TheFly, Bernstein's latest enactment connected the AI spot elephantine goes beyond GPUs, wherever it has been trying to adjacent the spread with Nvidia.

It's astir CPUs becoming a batch much important arsenic agentic AI workloads dispersed crossed information centers.

That's the large step-change for Bernstein arsenic AMD looks to rewrite its maturation story.

It argues AI systems volition request much general-purpose computing astir accelerators, making server CPUs a larger portion of the infrastructure buildout than investors whitethorn person assumed.

The steadfast present sees the 2030 server CPU marketplace astatine $223 billion, comfortably supra its anterior estimation of $137 billion.

For AMD, that could crook EPYC from a beardown broadside concern into a captious portion of the AI bull case.

Bernstein says AMD could payment arsenic AI request expands beyond GPUs Getty Images News

What Bernstein sees successful AMD beyond GPUs 

Bernstein's latest AMD telephone saw the steadfast bumping its people connected the banal to $600 from $525 and keeping an Outperform rating.

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The steadfast sees AMD gaining from a broader displacement successful AI infrastructure.

The large operation from the enactment was"CPU renaissance." 

Bernstein's statement is that agentic AI entails acold much general-purpose computing connected accelerators, meaning CPUs whitethorn go a larger portion of the AI information halfway buildout than erstwhile assumptions.

That gives AMD different limb up connected the competition, arsenic it already has a stronger presumption successful server CPUs done EPYC, giving it different mode to payment from AI spending.

Earlier this year, Bernstein was inactive cautious, keeping AMD astatine Market Perform adjacent arsenic it raised its people from $225 successful January to $265 successful April.

Though determination was bullishness pertaining to improving server assumptions, but determination were concerns implicit valuation, PC demand, lawsuit attraction and AI execution.

That said, the caller people suggests Bernstein present sees AMD arsenic a structural AI infrastructure winner, not conscionable Nvidia's backup plan.

Wall Street terms targets for AMD stock

• Baird: $625. Baird expert Tristan Gerra raised AMD's people from $300, citing stronger AI server positioning and apt gains successful the information halfway spot space.

• Citi: $575. Citi expert Atif Malik upgraded AMD to Buy from Neutral and raised the people from $460, saying Wall Street is underestimating AMD's GPU upside and Meta-linked AI opportunity.

• Bank of America: $560. BofA expert Vivek Arya raised AMD's people from $500, calling AMD a apical CPU prime arsenic EPYC Venice, AI inference, and server CPU TAM maturation fortify the bull case.

• Barclays: $500. Barclays raised its AMD target, framing the banal arsenic a compelling AI play arsenic XPU compute shortages and rising CPU relevance marque AMD much than conscionable a GPU challenger.

• Goldman Sachs: $450. Goldman upgraded AMD to Buy and raised its people from $240, arguing AMD is becoming a large beneficiary of endeavor agentic AI and server CPU demand.