Micron and AMD Positioned to Outperform Nvidia with Significant Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Micron's Revenue Surge: Micron reported $13.6 billion in revenue for Q1 FY2026, a 57% increase year-over-year, with net income soaring to $5.2 billion, significantly surpassing last year's $1.9 billion, highlighting its strong performance amid rising AI data center demand.
- Market Share Growth: As one of the leading manufacturers of high-bandwidth memory, Micron is well-positioned to benefit from the AI chip market's projected 29% CAGR, which should mitigate the cyclical impacts on its performance and enhance its competitive edge.
- AMD's Competitive Edge: AMD is set to launch its MI450 AI accelerator later this year, with a market cap around $380 billion; if it outperforms Nvidia's Vera Rubin platform, it could significantly boost its market share and revenue growth.
- Profitability Growth: AMD's revenue for Q3 FY2025 reached $9.2 billion, a 36% year-over-year increase, with net income of $1.2 billion reflecting a 61% profit growth, showcasing its strong competitive position and potential for profitability in the AI sector.
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 284.10 USD with a low forecast of 200.00 USD and a high forecast of 377.00 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.
36 Analyst Rating
27 Buy
9 Hold
0 Sell
Strong Buy
Current: 227.920
Low
200.00
Averages
284.10
High
377.00
Current: 227.920
Low
200.00
Averages
284.10
High
377.00
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.
