Feb 18 - The analyst group from Benchmark persists with their "Buy" rating on Advanced Micro Devices Inc. (AMD, Financial) while setting a price target at $170. The decision to award this rating comes after a meeting between analysts and two of AMD's high-level executives: Jean Hu, CFO, and Matt Ramsay, VP of Financial Strategy and Investor Relations. Analysts from Benchmark explained that AMD shows a stronger AI presence and continues to grow its share in client and server markets while outperforming Intel Corp. (INTC, Financial) in both segments.
While recent market concerns over whether AMD might have too much CPU inventory in the PC market have prompted benchmark analysts to take a more cautious tone on the market direction, they still say they see them in a better position than Intel. Rasgon attributes the consumption of CPUs above the market expansion of PCs by 13%, meaning that market saturation potential matters. With the launch of the MI350 AI chip, AMD will enjoy increased market leadership in the AI chip market. The new data center development provides a solution to past data center revenue limits and does not cause competition to competitors.
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