Cantor Fitzgerald raised AMD's price target to $700 on June 29, betting the MI300 chip will take meaningful market share from NVIDIA in data-center AI accelerators.
Cantor Fitzgerald analyst C.J. Muse raised his price target on Advanced Micro Devices to $700 from $500 on June 29, keeping an Overweight rating on the stock. The new target implies roughly 25% upside from Friday's close.
The call stands apart from a Wall Street consensus that has mostly clustered around NVIDIA as the AI chip winner. Muse expects AMD to grab meaningful share of the data-center accelerator market as its MI300 series ramps into 2024 and beyond.
AMD shares have more than doubled this year alongside the broader AI chip rally. The stock trades at about 35 times forward earnings, a discount to NVIDIA's multiple even after that stock's own run. That valuation gap is part of Muse's thesis: If AMD captures even a slice of NVIDIA's market share, earnings can compound faster than the street models.
Muse pointed to hyperscale customer testing and early MI300 orders as concrete signs of traction. The chips compete directly with NVIDIA's H100, which has been supply-constrained for most of the year. AMD's timeline to volume shipments in the fourth quarter aligns with customer demand cycles at Microsoft and other large cloud operators.
The risk is execution. AMD has a history of strong product announcements followed by delayed or muted volumes. Muse addressed that directly in his note, saying the visibility on MI300 production is better than for prior GPU launches. He cited direct feedback from the supply chain, not just AMD's own guidance.
For traders watching the AI hardware space, the $700 target gives AMD a clear valuation ceiling to test over the next six months. The stock sits above $550 as of Friday. The path to $700 requires AMD to deliver on the MI300 timeline and show real shipments before competing NVIDIA products hit the market in higher volumes.
Watch the AMD stock page for updates on analyst targets and price action as the chip competition sharpens.
"AMD has the product, the customers, and the manufacturing capacity to make 2024 a share-grab year," Muse wrote. "The debate is speed, not direction."
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