AMD, Meta Platforms top picks at Rosenblatt

Investing.com -- Rosenblatt analysts said in a note Monday that Advanced Micro Devices (NASDAQ:AMD ) and Meta Platforms (NASDAQ:META ) are two of their top stock picks for the first half of 2025, citing transformative growth opportunities in artificial intelligence (AI) and robust financial performance. AMD

AMD is highlighted as a standout performer due to its growing market share in CPUs and GPUs and its position in AI inference at the edge. 

"AMD’s EPYC processors are set to continue increasing the company’s revenue share in server and data center CPUs," Rosenblatt analysts noted. 

Additionally, they state that its GPU pipeline, including the upcoming MI350 and MI400, is expected to gain traction with hyperscale adoption and chiplet scalability.

The firm sees AMD benefiting from secular trends in AI and a broader non-AI market recovery. With a price target of $250, Rosenblatt values AMD at a 25x P/E multiple on a projected FY26 EPS of $10.00. 

However, analysts caution about risks in AMD’s highly competitive and cyclical semiconductor industry, where execution missteps or economic slowdowns could impact performance. Meta

Meta Platforms is experiencing what Rosenblatt calls an "impressive and durable AI-driven growth renaissance." 

They note that revenue surged 22% in the first nine months of 2024, driven by advertising innovations leveraging AI to enhance ad efficiency, daily user engagement, and campaign effectiveness.

Rosenblatt anticipates Meta’s revenue growth to sustain into 2025, bolstered by robust ad performance and investments in AI infrastructure. 

The firm projects Meta’s adjusted EBITDA margins will rise to 62.6% in 2025, with a price target of $811 based on a 29x multiple of 2025E EPS.

While both stocks face risks—ranging from regulatory pressures for Meta to market volatility for AMD—Rosenblatt sees strong upside potential for investors as these companies capitalize on the expanding AI ecosystem.

Source: Investing.com