AMD and Micron are top picks for analysts at Rosenblatt Securities for the first half of 2025. The firms sees big opportunities for the companies in artificial intelligence (AI) and next-generation technologies. Analyst Steve Frankel has a Buy rating on AMD with a $250 price target.
He says AMD is gaining share in CPUs and GPUs. This is being driven by momentum in AI. Frankel expects AMD’s EPYC processors to keep boosting its data center business.
He also sees the company’s upcoming MI350 and MI400 GPUs driving more revenues as they are adopted by hyperscale customers. “AMD’s dynamic potential for double-digit market share in GPU compute and AI inference at the edge is being recognized,” Frankel said. The analyst’s $250 price target is based on a 25-times P/E multiple on his fiscal 2026 adjusted EPS estimate of $10.00.
Frankel also has a Buy rating on Micron with a $250 price target.
Ai-driven market growth
He highlighted Micron’s opportunity in providing memory for AI platforms.
The analyst noted Micron’s high-bandwidth memory (HBM) business. He expects HBM to become a bigger part of the memory mix in AI systems compared to traditional DDR5 memory. “Industry-wide HBM supply issues are anticipated to persist into 2025, creating favorable dynamics for Micron,” Frankel said.
He added that Micron’s leadership in HBM3E and HBM4 technologies positions it well. Frankel’s $250 price target for Micron is based on a mid-teens P/E multiple on his fiscal 2026 adjusted EPS estimate of $18. As of Monday, AMD shares were up 4.70% to $124.82.
Micron shares were down 0.78%. Both companies are seen as well positioned to benefit from the rapid growth of AI. Their technologies are becoming increasingly critical as AI use cases expand.
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