This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
Wall Street has remained quite skeptical that AMD's MI300 series AI accelerators can go toe-to-toe with NVIDIA's offerings, with the persistent decline in the company's console-related sales continuing to further muddy the proverbial waters. Yet, one Wall Street player has now delivered a fairly upbeat prognosis on AMD's prospects.
To wit, Rosenblatt now sees AMD delivering on Wall Street's expectations vis-à-vis the third quarter of 2024 and the outlook for the fourth quarter, with a "slight upside" bias resulting from the market share gains of the EPYC CPU and MI300/325 AI accelerators, albeit tempered by the embedded growth expectations and "double-digit declines in consoles."
Critically, Rosenblatt believes that AMD shares are finally all set to outperform their peers after several quarters of mixed results - largely due to the weakness in the console and Xilinx segments - and persistent skepticism on Wall Street regarding the ability of the MI300 series accelerators to gain any "relevant market share."
In what constitutes the crème de la crème of Rosenblatt's investment note, the firm asserts:
"Our checks point to chiplet/tile GPU yields as trending better than was expected (points to upside potential on incremental demand and/or fewer wafers)."
The note goes on:
"Interestingly, we see Nvidia Blackwell yields a bit weaker after the metallization fix and the monolithic die approach in the current cycle."
Rosenblatt believes that AMD will be able to capture a "double-digit GPU compute share" in 2025 without offering a significantly superior offering to NVIDIA's, indicating that the chipmaker is all set to benefit from the secular AI-related tailwind that is permeating through the entire industry. On merit, Rosenblatt thinks that the MI300/325/350 should start to show an "incrementally" improving competitive position.
Accordingly, Rosenblatt has maintained its 'Buy' rating for AMD shares, with a price target of $250 per share, which corresponds to an upside potential of 57 percent relative to the current price of $158.95.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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