AMD and CleanSpark: AI Market Growth Potential and Profit Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- AMD Growth Potential: AMD's stock surged 49% over the past six months, with its data center segment achieving a 22% year-over-year growth in Q3, indicating strong demand for Instinct GPUs and expected revenue acceleration in the coming years.
- Helios System Launch: AMD plans to launch its Helios rack system in 2026, aimed at narrowing the gap with Nvidia, featuring multiple chips that are expected to enhance AI inferencing performance and strengthen market competitiveness.
- CleanSpark Market Opportunity: CleanSpark owns over 1.3GW of power and data center assets, actively addressing the growing power demand in data centers, which is expected to yield significant returns, especially with rising AI computing needs.
- Profitability and Risks: CleanSpark's Bitcoin mining business is profitable, with projected earnings per share of $1.25 for fiscal 2025; despite execution risks in construction timelines, its undervaluation offers investors a solid entry point.
Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AMD is 281.78 USD with a low forecast of 200.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
37 Analyst Rating
27 Buy
10 Hold
0 Sell
Moderate Buy
Current: 227.920
Low
200.00
Averages
281.78
High
350.00
Current: 227.920
Low
200.00
Averages
281.78
High
350.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
