In a note Friday, analysts at Melius Research described AMD (NASDAQ:AMD) as the "Nvidia-Mini." They raised their price target for the stock to $265 from $192 per share and maintained a Buy rating on the stock.
The firm raised the price target, citing the company's improving data center prospects in the near term and long term.
"The MI300X should benefit significantly from the 'inferencing phase' of AI, which is just beginning and requires a lot of high-bandwidth memory that is seeing increased supply each quarter this year," said the firm.
"With Microsoft as an anchor - and other clouds now picking up - AMD can generate more upside in AI vs. prior estimates (we already raised 2x in 2024)," they added.
Melius said its checks also indicate that traditional server CPU sales are improving with better fundamentals and solid execution.