AMD’s stock finds a new fan amid AI potential

Roth MKM analyst Suji Desilva is upbeat about AMD’s AMD, +2.65% opportunity to capitalize on the AI wave, one reason why he initiated the stock with a buy rating and $125 price target late Monday.

“By closely integrating advanced [graphics-processing-unit] capability with multiple Zen-based [central-processing-unit] cores, we believe AMD’s MI300A is very well designed for high performance AI inference and mid-range training,” Desilva wrote.

Further, AMD’s “MI300X chip with dense CDNA-based CPU capability, high memory density, and high data throughput is well suited for newer generative AI training workloads running large language models (LLMs),” he said.

The company’s Genoa processor also features upgrades to its specifications “that are well suited for AI workloads” and position the company to win market share, according to Desilva.