AMD\u2019s Su Says We\u2019re At Early Innings Of AI<\/p>\n
Su added that the AI industry is still in its early innings, highlighting that businesses are realizing that artificial intelligence can reap them rewards. She said that this has led to an increase in the adoption of the technology, and thereby an increase in the demand for CPUs.<\/p>\n
Su also explained the rising demand for CPUs, stating that the growing popularity of AI agents has led to an increase in compute needs.<\/p>\n
\u201cAs recently as last year, we thought the CPU total addressable market (TAM) was going to be growing at about 18-20%… now what we\u2019re seeing is, that rate is doubling,\u201d she added.<\/p>\n
Su stated that the CPU market is expected to be over $120 billion by 2030, growing at over 35% each year.<\/p>\n
\u201cFrom my standpoint, I think it\u2019s really a validation of everything that we believed, but what\u2019s happening is, the usefulness, the utility of AI has actually increased at an even faster pace than we originally thought,\u201d Su said.<\/p>\n
AMD\u2019s Blowout Q1 Turns Wall Street Bullish<\/p>\n
AMD\u2019s blowout first-quarter (Q1) performance resulted in a slew of price target hikes from Wall Street.<\/p>\n
According to TheFly, TD Cowen hiked its price target for AMD to $500 from $290 while keeping a \u2018Buy\u2019 rating. The firm cited AMD doubling its CPU TAM forecast that was issued six months ago as the reason for its bullish outlook.<\/p>\n
JPMorgan hiked its price target for AMD to $385 from $270, stating that the chipmaker\u2019s Q1 performance shows that a structural inflection is underway across the server CPU and data center accelerator growth trajectories.<\/p>\n
Analysts at Jefferies echoed similar sentiments, stating that the CPU market narrative has meaningfully strengthened. The firm hiked its AMD stock price target to $415 from $300, while keeping a \u2018Buy\u2019 rating.<\/p>\n
What Do Retail Traders Think About AMD?<\/p>\n
Retail sentiment on Stocktwits around\u00a0AMD<\/a> trended in the \u2018extremely bullish\u2019 territory, with message volumes at \u2018extremely high\u2019 levels. AMD was among the top trending tickers on the platform at the time of writing.<\/p>\n One bullish user stated that their only regret is not buying more of AMD stock.<\/p>\n AMD stock<\/a> is up 93% year-to-date and 318% over the past 12 months. The S&P 500 ETF (SPY) is up 31% over the past 12 months, while the Invesco QQQ Trust ETF (QQQ) is up 44%.<\/p>\n The iShares Core S&P 500 ETF (IVV) is up 31% during this period.<\/p>\n Also See:\u00a0Uber CEO Says Waymo Rollout \u2018Not Impacting\u2019 Business \u2013 Calls Autonomous Ride Hailing A $1 Trillion Opportunity<\/a><\/p>\n For updates and corrections, email newsroom[at]stocktwits[dot]com.<\/p>\n
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