Investment bank Rosenblatt recently released its investment outlook report for the first half of 2025. Analysts including Steve Frankel focused on two main themes: the era of artificial intelligence and the construction of next-generation broadband, providing detailed analyses of related tech stocks.
In his latest report on AMD, Frankel maintained a "Buy" rating with a target price of $250. He believes that AMD will experience strong growth in CPU and GPU market share in 2025, while also benefiting from a recovery in non-AI business. Unlike previous years, the market has generally recognized AMD's potential in GPU computing and AI edge inference, with expectations that its market share will reach double digits. This growth is supported by Xilinx's market position and AMD's advantages in chipset technology.
Specifically, AMD's EPYC processors are expected to continue increasing their revenue share in the server and data center CPU markets. Additionally, the company plans to launch the MI350 GPU in 2025 and the MI400 GPU in 2026, which will further drive revenue growth and market share increase due to large-scale adoption, chipset scale effects, and the trend of AI moving towards edge computing.
For Micron Technology, Frankel also gave a "Buy" rating with a target price of $250. The analyst is particularly optimistic about Micron's prospects in AI platform DRAM memory, especially its HBM (High Bandwidth Memory) business. Compared to DDR5 memory, the trading ratio for HBM is 3:1, and as the transition to HBM4 occurs, this ratio is expected to improve to 4:1, a structural change that has not been seen in previous memory cycles.
It is worth noting that HBM supply in the industry will remain a key issue, with an anticipated supply-demand imbalance continuing until 2025. Frankel believes that Micron will gain more market share in the HBM3E and HBM4 product lines, especially as the industry shifts from 8-layer to 12-layer and 16-layer stacking, where Micron's structural advantages in power efficiency will play a greater role.
As of the time of this report, AMD's stock price rose by 4.70% to $124.82, while Micron's stock price slightly fell by 0.78%. This investment outlook reflects the market's ongoing confidence in the growth of AI chips and high-performance computing, with both companies' technological advantages and market positions offering new growth opportunities in the AI era.
