This post was originally published on this site
Wells Fargo analysts raised the price target on Advanced Micro Devices (NASDAQ:AMD) stock to $120 per share (from $85) to reflect the company’s broadening datacenter TAM (total addressable market).
“While AMD’s EPYC server CPU momentum is to remain the primary focus/growth driver through 2023, as we look into 2024+, AMD’s ability to participate in the broader (AI-driven) datacenter silicon market will likely become an increasingly important part of our positive investment thesis,” the analysts wrote in a note they sent to clients.
They now expect the Datacenter GPU to increase from ~$10.3B in 2022 to $33.8B by 2027, growing at a +27% CAGR.
“In addition to AMD’s next-gen IMI300 APU (CPU + GPU) commencing 2H2023 volume ship into the El Capitan supercomputer, we think MI300 adoption at some hyperscale cloud customers could materialize into late 2023 / 2024,” the analysts wrote.
AMD shares are up over 3% today.
