Advanced Micro Devices, Inc. ( AMD , Financial ) stock edged higher on Wednesday morning, up about 2% as JPMorgan reiterated its " Neutral " rating. The firm also maintained a $130 price target, citing robust growth prospects for calendar year 2025.
Analysts noted AMD's confidence in achieving over 20% growth, driven by continued market share gains in server CPUs and strong traction among cloud and hyperscaler clients. The company also expects improvements in its desktop and notebook CPU segments, supported by rising enterprise demand.
AMD is poised to expand its cyclical businesses, including gaming and embedded systems. Furthermore, its AI graphics processing unit business is projected to grow over 60% this year, bolstered by a solid financial foundation.
In its outlook, JPMorgan sees AMD as a stock worth getting into on the back of its long term growth, but cautions about market uncertainties. AMD's future earnings performance is of continuing intensity to investors, who are aware of how these factors will affect AMD's performance in a growing treacherous semiconductor market.
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