Citi Initiates Catalyst Watches on AMD and ADI Ahead of Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Catalyst Watches Initiated: Citi has placed 30-day positive catalyst watches on AMD and ADI, anticipating AMD will benefit from rising agentic AI CPU demand while ADI is favored due to analog price hikes, indicating optimism for their upcoming earnings reports.
- Data Center Investment Surge: Citi estimates a 69% growth in hyperscaler capital expenditures this year, suggesting strong demand for computing capabilities will drive performance growth for related companies, particularly in AI infrastructure development.
- Positive Market Outlook: Citi projects the total addressable market will reach $731 billion by 2028, reflecting robust demand from hyperscalers, enterprise clients, and sovereign AI customers, further solidifying optimistic expectations for CPU demand.
- Smartphone Market Challenges: Although Citi expects a 17% year-over-year decline in smartphone units this year, demand for Apple suppliers Skyworks and Qualcomm remains relatively strong, indicating resilience in the premium market that may provide better protection for these companies.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 221.530
Low
210.00
Averages
289.13
High
377.00
Current: 221.530
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), 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, 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+, among 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.
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