Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Buzzing AI Stocks on Wall Street. On December 15, Piper Sandler reiterated an “Overweight” rating on the stock with a $280.00 price target.
The rating affirmation follows the firm’s pre-quiet period call with AMD, with analysts citing several key AI catalysts working in favor of the stock.
“AMD Gearing Up For Helios; We had the opportunity to host AMD’s pre-quiet period call last week. All in all, we walked away comfortable with the company’s near and midterm catalysts, as well as its position to execute on their key impending technical targets, such as the MI300 series ramp and technical traction for launch of the MI400 series.”
AMD elaborated that it is allocating a significant amount of resources toward the Helios rack, which is anticipated to launch in the middle of next year. Built on Meta’s OCP Open Rack for AI, the Helios rack is suited for massive AI and High-Performance Computing (HPC) workloads.
The firm’s research note also highlighted how the company is planning on having a diverse set of customers in addition to OpenAI. This, it believes, will bring a level of acceptance for AMD’s technology.
“That said, we believe it’s likely that a portion of new business will be a function of the OpenAI deal. Finally, AMD reiterated its focus on open standards across both networking and software. Reiterate OW.”
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