AMD Fails to Impress Wall Street, But Cowen Sees AI Breakthroughs
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June 16 Cowen is doubling down on Advanced Micro Devices (NASDAQ:AMD) after the chipmaker's AI event failed to spark much excitement on Wall Street, saying the company is still laying key groundwork in the race to challenge Nvidia (NASDAQ:NVDA).
In a Monday note, analyst Joshua Buchalter maintained a Buy rating, pointing to AMD's growing traction in the AI space. The event showcased its MI350 GPU lineup, enhancements to its ROCm 7 software, and teased the MI400 Helios rack-scale system slated for 2026.
While the absence of financial updates kept investors on the sidelines, Buchalter said AMD's roadmap shows promise. He likened the MI350 and MI400 to AMD's earlier CPU efforts that ultimately helped it close the gap with rivals.
A surprise appearance by OpenAI CEO Sam Altman offered a nod of validation, with praise for the forthcoming MI450X, which AMD aims to release in late 2026.
Seven of the ten largest AI firms are already using AMD chips, including early adopter Oracle (NYSE:ORCL), Meta (NASDAQ:META), and xAI. But Cowen says execution in 2H25 remains key to convincing investors AMD can scale and compete.
Is AMD Stock a Buy?
Based on the one year price targets offered by 41 analysts, the average target price for Advanced Micro Devices Inc is $130.84 with a high estimate of $200.00 and a low estimate of $95.00. The average target implies a upside of +12.64% from the current price of $116.16.
Based on GuruFocus estimates, the estimated GF Value for Advanced Micro Devices Inc in one year is $165.21, suggesting a upside of +42.23% from the current price of $116.16.
This article first appeared on GuruFocus.