Major Bank Ratings | Bernstein: Raises AMD Target Price to $225, Turns More Optimistic on Server Business Momentum

Glonhui, January 22｜Bernstein analyst Stacy Rasgon has raised AMD’s target price from $200 to $225, maintaining a “market perform” rating. The analyst has increased AMD’s Q4 revenue forecast, partly due to a more optimistic outlook on the company’s server business momentum. The analyst mentioned that AMD has reached an agreement with OpenAI and is expected to start deploying the Helios cabinet system in the second half of this year, though OpenAI remains the only major client at present. However, since OpenAI’s ramp-up to mass production will begin later this year, near-term pressure on AMD’s AI business may be relatively limited. He believes AMD is more likely to first benefit from robust server demand and market share gains in its core business, and investors can remain optimistic about the company’s AI chip development while observing its progress.