Latest news with #EPYC
Yahoo
5 days ago
- Business
- Yahoo
Bank of America makes its boldest AMD call yet
Bank of America makes its boldest AMD call yet originally appeared on TheStreet. Sometimes, Mr. Market whispers, but other times, it straight-up roars. This week, AI stock Advanced Micro Devices () found itself in the middle of the loudest buzz. That's the kind that comes with a billion-dollar tailwind: a major shift in global trade policy. 💵💰💰💵 Its data-center business has already been booming, but now it's onto bigger runways, courtesy of reopened doors in China. Moreover, as the outlook shifts, a major Wall Street voice put its name on a call that's its boldest yet on AMD stock. AMD goes from underdog to AI infrastructure powerhouse AMD kicked things off this year as an underdog in AI chips. However, its latest results show it's far from playing catch-up anymore. In the first quarter, AMD's data-center sales surged 57% from last year, hitting $3.7 billion. That's nearly 50% of the company's total revenues, and a clear sign that its AI chips are getting real traction. AMD's EPYC CPUs and Instinct GPUs, especially the MI300 series, are owning the chips are effectively shaping major data centers and getting strong reviews in the process. Some buyers even say AMD's chips beat Nvidia's when it comes to price and performance. And AMD's next move is arguably even bigger. In June, it showed off the MI350 Series and a new rack system called Helios. It's essentially a comprehensive full AI setup that includes CPUs, GPUs, networking, and cooling, all efficiently designed to work together out of the box. AMD claims the MI350 delivers 40% more AI performance for every dollar spent in comparison to the previous version. Major tech players are lining up. Meta is already making use of MI300 chips for its AI models and plans to test the MI350 next. Meanwhile, startup TensorWave recently built the largest AMD GPU system in North America, 8,192 chips pushing 21 exaFLOPS of power. More AI Stock News: TikTok's next move has Google and Meta sweating bullets Elon Musk moves xAI, Grok onto Palantir turf Rigetti shakes up quantum computing with bold advance What's also helping AMD compared to, say, Nvidia, is that it's betting on an open-source system called ROCm. That's winning over cloud providers and companies looking for greater flexibility. AMD stock gets green light to chase China's AI boom Bank of America analyst Vivek Arya is going big on AMD. In a bold July 16 note, Arya hiked his price target on AMD stock from $130 to $175, a superb 35% jump. Arya's bullishness has everything to do with the massive policy reversal from Washington that's likely to reshape the AI chip race. The U.S. government is now allowing AMD and Nvidia (NVDA) to resume shipments of advanced AI accelerators to Chinese data center customers. For AMD, that's a massive shift in the right effectively reopens enterprise sales channels that were frozen by export controls. Also, this could unlock $500 million to $1 billion in revenues for AMD in just the next two quarters. But it's not just a short-term revenue bump. The MI300 series and AMD's next-gen MI400 chip are now back in business in arguably the most lucrative AI market. China's top cloud providers reportedly spend roughly 20% of global AI training dollars. That's not a pool AMD wants to sit out of. On top of that, the U.S. chipmaker gets to sharpen its competitive edge against both Nvidia and Chinese rivals like Huawei, on the back of favorable policy tailwinds. Still, AMD must navigate supply chain hiccups, geopolitical uncertainty, and a testing competitive landscape. However, if all goes well, the company is set for a multi-quarter AI growth run that could make its current validation a lot cheaper. The $45-per-share hike in his target is easily the loudest Wall Street endorsement of AMD this year, underscoring a robust belief in the chipmaker's long-term growth of America makes its boldest AMD call yet first appeared on TheStreet on Jul 18, 2025 This story was originally reported by TheStreet on Jul 18, 2025, where it first appeared. 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
Miami Herald
12-07-2025
- Business
- Miami Herald
Bank of America drops shocking call on Super Micro stock
Few stocks have captured the AI server boom like Super Micro Computer (SMCI) . Skyrocketing this year, Super Micro's become a go-to for investors betting on liquid-cooled racks and next-gen AI data centers. Don't miss the move: Subscribe to TheStreet's free daily newsletter Its fundamentals are excellent, as the orders keep piling up, with the stock crushing broader markets. However, a surprise twist could test just how bulletproof that rally really is. A fresh take on Super Micro's future just dropped, and it could leave its most die-hard fans bracing for a shock they didn't see coming. Image source: Bloomberg/Getty Images Super Micro flipped the script, sprinting to the front of the AI server race and catching its rivals off guard. A glimpse of that can be seen from its incredible top-line expansion, with AMD currently posting over 82% year-over-year growth in sales. AMD's secrets have been complete AI "factories" layered with Nvidia's Blackwell GPUs and AMD's EPYC chips. Earlier, it used to sell just custom chassis, but now it bundles everything from switching boards and dense GPU racks to advanced cooling. Related: JPMorgan delivers blunt warning on S&P 500 That's essentially everything big cloud providers and enterprise customers need to train huge AI models. Arguably, the star of the show this year has been the 4U RTX PRO server. It packs eight Nvidia Blackwell RTX 6000 cards and next-gen PCIe Gen 6 networking to move 800 Gbps of data through a single chassis. Early performance tests have shown it efficiently matches larger, pricier setups. Those margins are likely to be critical going forward. Gross margins dropped from 18% in 2023 to under 10% expected later this decade. Still, Super Micro keeps underpricing bigger rivals without sacrificing performance. Corporate governance hasn't been smooth sailing, either. Delayed audits and a Justice Department probe forced the business to tighten controls and bring in a new auditor. On top of that, its supply chain moves have also been mighty ambitious. More Tech Stock News: Tesla's next bet could flip the robotaxi raceCathie Wood shells out $13.9 million for one high-stakes biotech stockApple's quiet shake-up could redefine its future Nevertheless, a $20 billion deal with DataVolt should boost hyperscale capacity, and a new plant in the Netherlands could help dodge chip shortages and tariffs. There are a ton of challenges for it to contend with, though. Dell and HPE are pushing their own AI server stacks, pressurizing Super Micro to cut prices even more. Any delays in scaling its European plant or new export curbs on GPUs could crimp growth fast. Hence, despite the transformation from a boutique parts maker to a serious AI hardware architect, Super Micro needs to continue executing impeccably to stay ahead. Super Micro Computer has emerged as a big winner on the stock market this year, gaining over 60%, but Bank of America's recent note could put a dent in that rally. Analyst Ruplu Bhattacharya restarted coverage with an Underperform rating, slapping on a fresh $35 price target. That implies a worrying 30% drop in stock price from where it trades currently. Bhattacharya feels Super Micro's profit machine could run into a wall. Competition is heating up quickly, as tech darlings like Dell and HP Enterprise muscle into the AI server space. These giants have the scale and deep ties with big-ticket customers that could force Super Micro to cut prices while staying competitive. Related: Veteran analyst drops jaw-dropping price target on AppLovin stock Right now, Super Micro's gross margin currently stands at 11.3% for FY25, but BofA expects that to drop to 9.4% by FY27. That's a deep slide for a hardware company trying to keep investors excited. To make matters worse, Bhattacharya warns of shortages of critical components, including high-end GPUs and liquid cooling parts. In addition, despite the company being first to the market with advanced liquid cooling tech, that lead may not last long. Rivals are racing to adopt the same tech, which could wipe out a key competitive edge. Top that off with Super Micro's ongoing legal concerns and weak internal controls, and Bhattacharya thinks the risks now outweigh the upside. Although he does see sales remaining strong, lower profits could overshadow top-line growth. Related: Amid AI boom, veteran analyst reboots AMD, Supermicro stock price targets The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
11-07-2025
- Business
- Miami Herald
Veteran analyst drops massive call on AMD stock
A decade ago, few would have bet on Advanced Micro Devices (AMD) surviving, let alone challenging Nvidia's (NVDA) AI chip dominance. However, through relentless execution and smart tech bets, AMD's not just in the fight, but also rattling the pecking order in the red-hot AI arms race. Don't miss the move: Subscribe to TheStreet's free daily newsletter AMD's big bet on bold designs and faster chips is paying off and then some, as AI reshapes everything from cloud servers to supercomputers. That said, one heavyweight analyst note suggests that Wall Street is misreading AMD's next big chapter, an upside that's a lot bigger than investors think. Image source: Cheng/Getty Images It's easy to forget how close AMD came to disappearing altogether. Back in 2015, the chipmaker was hanging by a thread, losing out to Intel's stronger CPUs and watching Nvidia dominate GPUs. Then Lisa Su stepped in as CEO that October, changing everything. Su bet big on new ideas, approving a massive redesign of AMD's CPUs called Zen. By 2017, Zen-based Ryzen chips were winning back PC buyers, and AMD's EPYC server processors started chipping away at Intel's data center business share. Related: Cathie Wood drops bold message on Apple, Tesla stock That turnaround set the stage for AMD's breakthrough push into AI. In 2020 and 2021, it rolled out its first real AI chips, the Instinct MI100 and MI200. Those helped propel AMD in the AI race, while still lagging behind Nvidia's powerful GPUs. Fast-forward to 2024, and AMD surprised one and all with its MI300 series. For the first time, AMD's chips matched Nvidia's in key AI tests. Now, the new Instinct MI350 could be the real game-changer. The MI350 is packed with next-generation technology, including 56 compute units, a massive 288 GB of high-speed memory, and 8 TB per second of bandwidth to handle AI workloads. Also, it uses new data types, including the FP6 and FP4, that boost speed for training AI models and running them globally. More Tech Stock News: Tesla's next bet could flip the robotaxi raceCathie Wood shells out $13.9 million for one high-stakes biotech stockApple's quiet shake-up could redefine its future Early tests show the MI350 can potentially match or even surpass Nvidia's latest Blackwell B200 chips on some AI jobs. Also, it can do that with 30% less money, which makes many big tech buyers think twice about sticking only with Nvidia. Layer that with AMD's open-source software platform, ROCm 7.0, and its smart chiplet design keeps costs down. It's clear that under Lisa Su, AMD's comeback has been far from a fluke, and Nvidia's grip on AI is no longer guaranteed. HSBC just gave AMD's AI ambitions a huge credibility bump, upgrading the stock to Buy, while doubling its price target to $200, up from $100. That's a massive 100% hike, and it's all down to pricing power. Analyst Frank Lee says AMD's new MI350 data center GPUs are likely to be much stronger than expected on price, expecting them to sell for $25,000 on average, way up from the prior estimate of $15,000. That premium alone could take AMD's 2026 AI sales to $15.1 billion, 57% above current forecasts. Related: Veteran analyst drops new clue on Nvidia's next big move AMD's Instinct accelerators are also catching up with Nvidia's Blackwell-based B200 chips on performance. That shrinks a gap that seemed virtually impossible to close. Consequently, HSBC raised its 2025 and 2026 earnings estimates by 13% and 23%, respectively, on the back of this stronger pricing and faster adoption. It doesn't stop there. The next major development is the MI400 series, AMD's first full-rack AI server solution. Slated to launch next year, the MI400 could go toe-to-toe with Nvidia's next-gen Vera Rubin platform. HSBC says its standard data center-friendly design should help it win big with the big-ticket buyers looking to diversify their AI hardware suppliers. Non-AI segments are also pushing AMD higher. HSBC bumped its 2025 server shipment forecast by 5%, pointing to robust demand for general server and client chips. All in all, with HSBC's bold $200 target based on a 31x multiple of projected 2026 EPS, investors can now potentially see real fuel for AMD's AI story. Related: One explosive trend sent this tech stock rocketing 147% in 9 months The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
08-07-2025
- Business
- Yahoo
Advanced Micro Devices Stock Gains 11% YTD: Time to Hold or Exit?
Advanced Micro Devices AMD shares have rallied 11.4% in the year-to-date period, outperforming the Zacks Computer and Technology sector's increase of 7.9%. The company's shares have also outperformed its peer, Intel Corporation INTC, which is also expanding its footprint in the data center and client segments. Intel's shares have gained 9.5% in the year-to-date period. Image Source: Zacks Investment Research Despite Intel's efforts, AMD's innovation has given it an edge over INTC. Advanced Micro Devices is benefiting from its expanding portfolio, accretive acquisitions and rich partner base. Its robust Data Center and Client revenues have been a major growth driver for its how should you play the AMD stock now? Let's dig deep to find out. AMD's expanding portfolio has been noteworthy. It is benefiting from its strong presence in the data center market, which is driven by the widespread adoption of its EPYC processors. In the first quarter of 2025, data center revenues surged 57.2% year over year to $3.674 billion, accounting for 49.4% of total on this momentum, in June 2025, the company announced that Nokia NOK had adopted its fifth-gen EPYC 9005 Series processors for the Nokia Cloud Platform. These processors will enhance performance per watt for containerized workloads, which is important to 5G Core, edge, and enterprise applications. The integration of AMD EPYC 9005 Series processors into Nokia Cloud Platform supports telecom networks in meeting rising data demands while improving energy efficiency and reducing environmental impact. AMD is strengthening its footprint in the artificial intelligence (AI) market through an expanding portfolio. AMD recently introduced its comprehensive, end-to-end AI platform at the 2025 Advancing AI event, introducing the powerful Instinct MI350 Series GPUs with 4x generational AI compute gains. The company also showcased its open, rack-scale AI infrastructure and ROCm 7 software stack, enabling scalable, energy-efficient AI deployment. Strategic partners, including Meta Platforms, OpenAI, Microsoft, and Oracle, highlighted AMD's growing role in powering next-generation AI Platforms announced the broad deployment of AMD Instinct MI300X for Llama 3 and Llama 4 inference. Meta Platforms also expressed strong interest in the MI350 Series and is collaborating with AMD on future AI roadmaps, including the MI400 platform. Despite an expanding portfolio and a rich partner base, AMD is facing stiff competition from NVIDIA NVDA in the data center is benefiting from the strong growth of artificial intelligence (AI) and high-performance, accelerated computing. The growing demand for generative AI and large language models, which utilize GPUs based on NVIDIA's Hopper and Blackwell architectures, is driving its data center revenues. In the first quarter of fiscal 2026, Data Center revenues jumped 73.3% year over year and 9.9% from the previous quarter to $39.1 billion. Despite an expanding portfolio and a rich partner base, AMD is expected to be hurt by export restrictions on GPUs to China, which will be a headwind and stiff competition from expects second-quarter 2025 revenues of $7.4 billion (+/-$300 million). At the mid-point of the revenue range, this represents year-over-year growth of approximately 27%. AMD expects a reduction of approximately $700 million in second-quarter 2025 revenues due to the halt of MI308X shipments to China. The Zacks Consensus Estimate for AMD's second-quarter 2025 earnings is currently pegged at 54 cents per share, which has declined by a couple of pennies over the past 30 days, indicating a year-over-year decline of 21.74%.The consensus mark for second-quarter 2025 revenues is pegged at $7.41 billion, indicating year-over-year growth of 26.96%. Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote AMD stock is currently overvalued, as the Value Score of F suggests a stretched valuation at this stock is trading at a premium, with a forward 12-month Price/Sales of 6.33X compared with the Computer - Integrated Systems industry's 3.83X. Image Source: Zacks Investment Research AMD's expanding portfolio, strategic acquisitions and rich partner base are expected to improve its top-line growth. However, its near-term prospects are dull due to macroeconomic uncertainties and stiff competition, particularly from NVIDIA in the cloud data center and AI chip markets. The growing demand for custom AI chips, offered by companies like Broadcom, is increasing concerns over market share. Stretched valuation also remains a concern. AMD currently has a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Nokia Corporation (NOK) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
03-07-2025
- Business
- Yahoo
Hewlett Packard Enterprise (HPE) Launches Gen12 ProLiant Servers for AI Workloads
Hewlett Packard Enterprise Company (NYSE:HPE) is one of the 10 undervalued tech stocks flying under Wall Street's radar. On June 25, during the HPE Discover Las Vegas 2025 event, the company announced the expansion of its ProLiant Compute Gen12 server portfolio. HPE added two new servers to the ProLiant Compute Gen12 portfolio: the HPE ProLiant Compute DL345 Gen12 and HPE ProLiant Compute DL325 Gen12. Both servers are powered by 5th Generation AMD EPYC processors (previously codenamed Turin). Ken Wolter / The DL325 and DL345 Gen12 servers feature up to 6TB of memory capacity, which doubles the memory capacity of the previous Gen11 servers. Additionally, the 5th Gen AMD EPYC processors are designed to optimize memory-intensive workloads, including virtualization, virtual desktop infrastructure (VDI), and container workloads. According to HPE, the new servers are optimized for virtualization, VDI, and edge deployments. Specifically, the company designed them to support AI-driven management and high-performance computing needs. The servers are available for order as of June 25, 2025, with shipping expected to begin in July 2025. Hewlett Packard Enterprise Company (NYSE:HPE) is an IT infrastructure and services firm. It provides solutions for cloud computing, data storage, networking, and edge computing through segments like Server, Hybrid Cloud, Intelligent Edge, and Financial Services. HPE serves enterprise, government, and service provider clients across more than 170 countries. While we acknowledge the potential of HPE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. 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
