Latest news with #FrankLee
Yahoo
19 hours ago
- Business
- Yahoo
Analyst With $200 Advanced Micro Devices (AMD) Price Target Explains Why He's Bullish, Sees ‘Big Reversal' in AI Revenue
Advanced Micro Devices Inc (NASDAQ:AMD) is one of the . HSBC's Frank Lee explained in a recent program on CNBC why he raised his price target on Advanced Micro Devices Inc (NASDAQ:AMD) to $200. Lee believes AMD could rake in $8 billion in AI revenues and talked about other growth catalysts for the stock that's up 29% so far this year. 'I think the main thing is that, you know, compared to where we were at the beginning of the year where we got a lot more conservative, in terms of the outlook of Advanced Micro Devices Inc (NASDAQ:AMD) AI revenue. We see some changes in the last couple months that definitely much more constructive, and I think at the beginning of the year, there was very little visibility. The MI325 chip that they launched in the, in in the first quarter wasn't getting quite the feedback we were expecting. But now as we see the MI355, the feedback's been a lot more positive, and also we see a big uplift in pricing—much more than we previously expected—and we do see the hyperscalers seem to be interested. So hence we think there could be a big reversal in terms of the AI revenue for for this year. So we now have more than eight billion in revenues, which is considerably higher than the consensus around six.' Photo by L N on Unsplash Advanced Micro Devices (NASDAQ:AMD) bulls believe the market should stop comparing the company's chips with Nvidia and focus on its data-center growth and its competitive edge over other players like Intel. Advanced Micro Devices (NASDAQ:AMD)'s strong growth in the data center segment is indeed impressive, driven by Instinct GPU shipments and strong sales of EPYC CPUs. Advanced Micro Devices (NASDAQ:AMD) will continue to benefit from organic growth catalysts in this segment despite the competition from Nvidia. According to Goldman Sachs Research, global data center demand could surge by 160% by 2030. In the U.S., data centers are projected to use 8% of total power by 2030, up from 3% in 2022. McKinsey estimates that adding the required U.S. capacity will need over $500 billion in infrastructure investment by the decade's end. Longriver Partners Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second quarter 2025 investor letter: 'Nvidia's NVLink, its high-bandwidth interconnect, underpins training at scale, where GPUs must coordinate across racks. NVLink Fusion, announced this year, may extend that advantage by letting custom chips plug into Nvidia's system rather than replace it. However, many inference tasks can be handled independently, one GPU at a time. That lowers the importance of networking, and with it, Nvidia's edge in tightly integrated systems. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
3 days ago
- Business
- Bloomberg
Single Best Idea: Lee & Calvasina
Tom Keene breaks down the Single Best Idea from the latest edition of Bloomberg Surveillance Radio. In this episode, we feature conversations with Frank Lee & Lori Calvasina. Watch Tom and Paul LIVE every day on YouTube:
CNBC
4 days ago
- Business
- CNBC
These stocks can benefit the most from lower oil prices, says Jefferies
Stocks that could win big if oil prices continue to slide include Advanced Micro Devices and Datadog , according to Jefferies. West Texas Intermediate crude oil prices have already taken a leg lower this year, down from around $80 per barrel in mid-January to around $68 today. Several factors have contributed to the weakness, including President Donald Trump's global tariff war and the decision from OPEC+ members to hike production. The trend is unlikely to reverse anytime soon, according to Jefferies, which wrote in a Thursday note that oil prices are likely to stay low for the time being. But although energy companies might take a hit, the firm believes stocks in some other sectors could actually win big. "In terms of the broader market implications, the [near-term] crude price softness — and potential stabilization at these levels — could serve as a tailwind for U.S. equities," the bank wrote. "Significant price corrections in WTI have tended to correspond with periods of EPS growth and share performance for several (potentially counter-intuitive) sectors: the tech complex and discretionary." In the same note, Jefferies included a list of stocks that could outperform on lower oil prices, including the following: Advanced Micro Devices shares have surged 30% this year, but the graphics processing unit manufacturer may have further upside. Last week, HSBC upgraded its rating to buy from hold. Analyst Frank Lee's target price of $200 per share, up from $100, is about 27% above Friday's close. "We upgrade to Buy as we believe the pricing premium is undervalued and there could be further upside to earnings driven by MI400 series launch in 2026," Lee wrote. "We now expect that upside to FY26e AI revenue will lead to higher re-rating to AMD that is not fully priced in by the market despite the 14% share price rally post its AI day event (12 June)." Datadog, up 1% this year, was another name that could win big, according to Jefferies. Wolfe Research agreed with this bullish take, upgrading the stock to an outperform rating from peer perform last month. "After attending DASH in NYC where the vibes were sky-high with AI announcements aplenty, we are here to say that we believe those turbulent times are in the rearview and this dog isn't just hunting again, it's feasting!" wrote analyst Alex Zukin. Zukin's $150 price target implies an upside of 3% from Datadog's Friday closing price. Jefferies also singled out Zscaler as a stock that could outperform on lower oil prices. Shares of the cybersecurity company have soared 60% in 2025. In June, Wells Fargo upgraded the stock to an overweight rating from equal weight. Analyst Andrew Nowinski's new price target of $385, up from $260, is around 33% above the stock's current trading price. As a catalyst, the analyst highlighted strong momentum in Zscaler's new and upsell business this fiscal year. Unscheduled billings growth should improve from here, while scheduled billings should become less of a headwind next year. "We believe this will provide the foundation for 20%+ billings growth in FY26, as these unscheduled billings will become part of the scheduled billings," Nowinski added.
Yahoo
6 days ago
- Business
- Yahoo
1 Artificial Intelligence (AI) Stock to Buy Before It Jumps 37%, According to a Wall Street Analyst
Key Points HSBC has doubled its price target on AMD stock. The investment bank believes that AMD's new AI chips are powerful enough to help it close the gap with Nvidia. The potential earnings growth that AMD is expected to clock next year could indeed help it deliver the upside that HSBC analysts are expecting. 10 stocks we like better than Advanced Micro Devices › Advanced Micro Devices (NASDAQ: AMD) has underperformed the broader semiconductor sector in the past year. Shares of the chipmaker have slid almost 20% during this period, but it looks like the company's fortunes could turn around in the coming year. HSBC analyst Frank Lee has doubled his price target on AMD stock to $200, which points toward 37% gains from current levels. Lee says that AMD has managed to close in on Nvidia's (NASDAQ: NVDA) lead in the artificial intelligence (AI) accelerator market with its latest series of processors, and that could help the former record a big bump in its revenue next year. Let's take a closer look at the reasons why HSBC has become so bullish on AMD stock, and check if AMD could indeed hit the $200 mark going forward. AMD's data center revenue could jump significantly thanks to its latest chips AMD launched its MI350X and MI355X data center graphics processing units (GPUs) last month. The company says that these new processors are three times more powerful than the previous MI300X accelerators, and they even outperform Nvidia's Blackwell GPUs in both AI training and inference workloads. AMD has equipped these processors with a whopping 288 gigabytes (GB) of high-bandwidth memory (HBM), which is 1.6 times higher than Nvidia's GB200 and B200 AI graphics cards. The serious performance gains and competitiveness that AMD claims to have achieved with its latest GPUs are translating into more business for the company, according to HSBC. AMD says that it is partnering with multiple AI giants such as Meta Platforms, Microsoft, Oracle, OpenAI, and xAI, among others, to build and deploy AI data centers powered by its processors. In fact, AMD claims that "seven of the 10 largest model builders and AI companies are running production workloads" using its AI accelerators. This improving adoption of AMD's AI chips can be attributed to a big bump in computing power along with an improvement in energy efficiency, which enables its customers to reduce operating costs. Even better, AMD has reportedly priced its latest AI accelerators competitively so that it can eat into Nvidia's share. According to HSBC analysts, AMD's MI355 AI GPU is 30% cheaper than Nvidia's B200. Not surprisingly, they are expecting the price-to-performance advantage of AMD's latest chips to translate into healthy data center revenue growth. The company is now expected to achieve $15 billion in AI GPU revenue in 2026, which is higher than the consensus estimate of $9.6 billion on Wall Street. It's worth noting that AMD ended 2024 with an estimated data center GPU revenue of over $5 billion. So, AMD could potentially triple this business in just two years. Moreover, AMD management is forecasting its data center GPU revenue to reach an annual run rate of "tens of billions of dollars" in the long run, and it looks like its new chips could help it achieve that target. The projected earnings growth points toward solid upside Consensus estimates are projecting a 17% increase in AMD's earnings this year, followed by a much stronger jump of 47% in 2026 to $5.71 per share. That won't be surprising, considering the estimated jump of 3x in its data center GPU revenue. AMD has an additional catalyst in the form of the client CPU (central processing unit) market, where it is winning more share, apart from capitalizing on the secular growth of the AI personal computer market. All this suggests that AMD could indeed hit Wall Street's consensus earnings target in 2026, though there's a chance that it may be able to do better than that. This improved earnings power could translate into more upside on the stock market. AMD is currently trading at 39 times forward earnings, which is a discount to the U.S. technology sector's average of 51. Even if it trades at a discounted 35 times earnings and achieves $5.71 per share in earnings in 2026, its stock price could hit $200. So, investors can start accumulating this semiconductor stock, as it seems set for a turnaround thanks to its improving stature in AI chips. Do the experts think Advanced Micro Devices is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Advanced Micro Devices make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,072% vs. just 180% for the S&P — that is beating the market by 891.29%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 1 Artificial Intelligence (AI) Stock to Buy Before It Jumps 37%, According to a Wall Street Analyst was originally published by The Motley Fool
Globe and Mail
6 days ago
- Business
- Globe and Mail
1 Artificial Intelligence (AI) Stock to Buy Before It Jumps 37%, According to a Wall Street Analyst
Key Points HSBC has doubled its price target on AMD stock. The investment bank believes that AMD's new AI chips are powerful enough to help it close the gap with Nvidia. The potential earnings growth that AMD is expected to clock next year could indeed help it deliver the upside that HSBC analysts are expecting. 10 stocks we like better than Advanced Micro Devices › Advanced Micro Devices (NASDAQ: AMD) has underperformed the broader semiconductor sector in the past year. Shares of the chipmaker have slid almost 20% during this period, but it looks like the company's fortunes could turn around in the coming year. HSBC analyst Frank Lee has doubled his price target on AMD stock to $200, which points toward 37% gains from current levels. Lee says that AMD has managed to close in on Nvidia 's (NASDAQ: NVDA) lead in the artificial intelligence (AI) accelerator market with its latest series of processors, and that could help the former record a big bump in its revenue next year. Let's take a closer look at the reasons why HSBC has become so bullish on AMD stock, and check if AMD could indeed hit the $200 mark going forward. AMD's data center revenue could jump significantly thanks to its latest chips AMD launched its MI350X and MI355X data center graphics processing units (GPUs) last month. The company says that these new processors are three times more powerful than the previous MI300X accelerators, and they even outperform Nvidia's Blackwell GPUs in both AI training and inference workloads. AMD has equipped these processors with a whopping 288 gigabytes (GB) of high-bandwidth memory (HBM), which is 1.6 times higher than Nvidia's GB200 and B200 AI graphics cards. The serious performance gains and competitiveness that AMD claims to have achieved with its latest GPUs are translating into more business for the company, according to HSBC. AMD says that it is partnering with multiple AI giants such as Meta Platforms, Microsoft, Oracle, OpenAI, and xAI, among others, to build and deploy AI data centers powered by its processors. In fact, AMD claims that "seven of the 10 largest model builders and AI companies are running production workloads" using its AI accelerators. This improving adoption of AMD's AI chips can be attributed to a big bump in computing power along with an improvement in energy efficiency, which enables its customers to reduce operating costs. Even better, AMD has reportedly priced its latest AI accelerators competitively so that it can eat into Nvidia's share. According to HSBC analysts, AMD's MI355 AI GPU is 30% cheaper than Nvidia's B200. Not surprisingly, they are expecting the price-to-performance advantage of AMD's latest chips to translate into healthy data center revenue growth. The company is now expected to achieve $15 billion in AI GPU revenue in 2026, which is higher than the consensus estimate of $9.6 billion on Wall Street. It's worth noting that AMD ended 2024 with an estimated data center GPU revenue of over $5 billion. So, AMD could potentially triple this business in just two years. Moreover, AMD management is forecasting its data center GPU revenue to reach an annual run rate of "tens of billions of dollars" in the long run, and it looks like its new chips could help it achieve that target. The projected earnings growth points toward solid upside Consensus estimates are projecting a 17% increase in AMD's earnings this year, followed by a much stronger jump of 47% in 2026 to $5.71 per share. That won't be surprising, considering the estimated jump of 3x in its data center GPU revenue. AMD has an additional catalyst in the form of the client CPU (central processing unit) market, where it is winning more share, apart from capitalizing on the secular growth of the AI personal computer market. All this suggests that AMD could indeed hit Wall Street's consensus earnings target in 2026, though there's a chance that it may be able to do better than that. This improved earnings power could translate into more upside on the stock market. AMD is currently trading at 39 times forward earnings, which is a discount to the U.S. technology sector's average of 51. Even if it trades at a discounted 35 times earnings and achieves $5.71 per share in earnings in 2026, its stock price could hit $200. So, investors can start accumulating this semiconductor stock, as it seems set for a turnaround thanks to its improving stature in AI chips. Should you invest $1,000 in Advanced Micro Devices right now? Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,149!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,060,406!* Now, it's worth noting Stock Advisor's total average return is 1,072% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
