Baird Sets $300 Target as Advanced Micro Devices AI Server CPU Demand and GPU Momentum Grow
Baird reiterated an Outperform rating with a $300 target, citing accelerating AI x86 server CPU demand, resumed MI308 sales and MI450 ramp with OpenAI collaboration. Jim Cramer highlighted AMD’s next-gen chips carry more memory than competitors’, boosting AI demand after Q4 revenue beat of $10.27 billion and $1.53 EPS.
1. Baird Reiterates Outperform Rating
On February 4, Baird analyst Tristan Gerra maintained an Outperform rating on Advanced Micro Devices with a $300 price target. The firm highlighted accelerating AI x86 server CPU demand, a recovery in MI308 GPU sales and an on-track MI450 ramp in partnership with OpenAI as key growth drivers.
2. Strong Q4 Results and Q1 Guidance
Advanced Micro Devices delivered fourth-quarter revenue of $10.27 billion and adjusted EPS of $1.53, surpassing estimates of $9.67 billion and $1.32. The company guided first-quarter revenue to $9.8 billion versus consensus of $9.38 billion, prompting Benchmark to reiterate a $325 share price target and Buy rating.
3. Memory Lead Boosts AI Demand
Jim Cramer emphasized that AMD’s next-generation chips feature more onboard memory than competitors, underpinning robust AI chip demand. He noted that enhanced memory capacity positions the company well for the second half of the year as data-intensive workloads proliferate.