Rosenblatt surveyed its analysts, including Steve Frankel, compiling their top picks for the first half of 2025. The stock reflects key themes across its research universe, including the era of artificial intelligence and the development of next-generation broadband.
Steve Frankel maintained a Buy rating on Advanced Microdevices, Inc. (NASDAQ:AMD) with a price target of $250.
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AMD is one of Rosenblatt’s top picks for the first half of 2025 due to momentum in CPU and GPU share gains in 2025 and a broader non-AI recovery starting in 2025.
The difference going into 2025 is that the Street recognizes this dynamic, which has legs for double-digit market share in GPU computing and AI inference at the edge, with a secular opportunity in Xilinx ownership and chiplet prowess .
AMD’s EPYC processors are likely to continue increasing the company’s revenue share in server and data center CPUs as the business proposition is significant, the analyst said.
AMD’s MI350 in 2025 and MI400 in 2026 GPUs will generate additional revenue and greater market share as hyperscale adoption, chiplet scaling, and the advancement of AI to the edge, he added.
The price target reflects a P/E multiple of 25 times Frankel’s adjusted EPS of $10.00 for fiscal 2026. This multiple is in line with the analyst’s AI Computing Group average of 25 times.
Frankel reiterated a Buy rating on Micron Technology, Inc. (NASDAQ:MU) with a price target of $250.
Micron is one of Rosenblatt’s top picks for the first half of 2025, as he liked the big opportunity for deploying DRAM content on AI platforms in the future.
In particular, the analyst liked Micron’s HBM opportunity, where trading ratios are 3 to 1 with respect to DDR5 and move to 4 to 1 with the move to HBM4, a structural change that Frankel did not witness in any other cycle by memory.
HBM supply in the industry remains an issue to consider, with supply not catching up with demand until well into 2025.
For Micron, Frankel’s view on HBM is more related to the overall DRAM bit supply implications, with HBM3E getting a 3-to-1 trade ratio and HBM4 a 4-to-1 trade ratio, creating favorable supply dynamics. and demand.
Frankel noted that Micron gains share from HBM in the HBM3E and HBM4 varieties and as the segment moves from 8-Hi to 12-Hi and 16-Hi configurations, where energy efficiency (a structural advantage of Micron) becomes increasingly important.
Frankel considered it reasonable to use P/E to value Micron, given its consistent and proven profitability through cross-memory cycles, aggressive stock buybacks, and a cycle driven by AI workload dynamics that correlate with DRAM content. The price target reflects a P/E multiple of around 15 on analyst adjusted EPS of $18 for fiscal 2026.