AMD (AMD): AI Growth Strategy, Server Shipments Surge, and Analyst Ratings

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the must-buy AI stocks to invest in. On December 22, Rosenblatt Securities’ Kevin Cassidy stated that Micron Technology’s upbeat outlook during their earnings call aligned perfectly with Advanced Micro Devices, Inc.’s (NASDAQ:AMD) own ambitions in the server CPU space. According to Cassidy, Micron’s comments point to a revitalized AI market and better conditions in the chip supply chain, which could lift several related stocks. And at the heart of Micron’s positivity is the role of DRAM, which Cassidy described as an essential component to AI systems and that limited supply will result in shortages.

Cassidy noted that despite DRAM prices rising, demand remains robust across all markets. And a key highlight is the surge in server shipments. As per Cassidy, Micron’s server unit volume shipments expectations are now high teens percent year on year from 10% last quarter. This momentum will carry into 2026, he stated.

For AMD, Cassidy pointed out that the strong server unit shipments confirm the company’s recent comments of server CPU TAM doubling to $60B by 2030. The company also set expectations for 50% market share from the current 40%.

Separately, Truist reduced its price target for AMD from $279 to $277 on December 19. The firm left the Buying rating unchanged. This move, the firm said, was part of a broader review of semiconductor and AI stocks, which resulted in updating models after setting estimates for 2027. William Stein, the lead analyst, anticipates some near-term challenges in the AI world, where companies face real hurdles like “finding the power to run AI infrastructure and getting the funding to pay for it.” But despite these issues, Stein is very optimistic about the companies, including AMD. He believes AI infrastructure semiconductor stocks remain cheap relative to their growth.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that designs and manufactures processors, graphics cards, and data center solutions. The company’s GPUs and custom chips are used by cloud providers and enterprises to support generative AI and machine learning applications.

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Disclosure: None. This article is originally published at Insider Monkey.