Advanced Micro Devices (NASDAQ: AMD) is exploding this morning. It was up $14, or 6% in premarket, and 9.20% by 11 a.m.
All after CEO Lisa Su said AMD could achieve “double-digit” share of the data center AI market over the next three to five years. Right now, that market is dominated by Nvidia, which holds about 90% of that market.
Fueling momentum, Wells Fargo just raised its AMD price target to $345 and assigned an overweight rating. That’s thanks to AMD gaining market share and the CEO’s prediction for compound annual revenue growth of about 35%, as well as insatiable demand for AI chips.
In addition, she said AMD’s data center business is expected to grow at around 80% per year, and is on track to hit billions of dollars of sales by 2027. By 2030, AMD expects AMD data center revenue to hit $1 trillion per year.
AMD isn’t the only one seeing action this morning.
Nvidia (NASDAQ: NVDA): TD Cowen reiterated its buy rating on the tech giant on the likely strength of the Blackwell Ultra uplift. Plus, Citi reiterated a buy rating on the stock, with a price target of $220 from $210. The firm expects NVDA to post sales of $56.8 billion, as compared to analyst expectations for $54.6 billion.
Analysts at Bank of America just reiterated a buy rating on Nvidia. The firm says NVDA is well-positioned for healthcare and artificial intelligence. “Nvidia, a leader in accelerated computing, has broadened its reach into high-compute healthcare workloads and continues to engage in partnerships on the application side,” they said, as quoted by CNBC.
In addition, according to analysts at UBS, it sees Nvidia guiding fourth quarter revenue to a range of $63 billion to $64 billion. At the moment, the firm has a buy rating with a price target of $235.
AT&T (NYSE: T): Analysts at KeyBanc Capital Markets just upgraded AT&T to an overweight rating with a price target of $30. The firm said the telecom giant looks even more attractive after the drop, especially with the stock’s solid capital return.
If you’re not aware, the stock took a hit on “overblown” concerns about the battle for mobile phone subscribers. However, the company did manage to cool some of those worries after reporting better-than-expected subscriber additions. “We think the recent pullback was driven by competitive-related concerns in Wireless and are overblown,” they said, as quoted by CNBC. “We argue that with AT&T’s strategic positioning, growth outlook, and capital return, a historical average multiple is warranted.”
In short, weakness appears to be an opportunity in shares of AT&T.
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