Rosenblatt selected its analysts, including Steve Frankel, for the first half of 2025. The stocks reflect key themes in its research universe, including the age of artificial intelligence and building next-generation broadband.
Steve Frankel maintained a buy rating Advanced Micro Devices, Inc (NASDAQ:AMD) with a price target of $250.
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AMD is one of Rosenblatt’s top picks for the first half of 2025 amid a surge in CPU and GPU shares in 2025 and a broader non-AI recovery beyond 2025.
The difference entering 2025 is that the Street acknowledges this dynamic, with legs for double-digit market share in GPU compute and AI inference at the edge, a secular opportunity on Xilinx incumbency and chiplet capability.
AMD’s EPYC processors will likely continue to increase the company’s revenue share in server and data center CPUs because the business proposition is important, analysts said.
AMD’s MI350 in 2025 and MI400 in 2026 GPUs will drive additional revenue and increased market share as hyperscale adoption, chiplet scale, and AI moves to the edge, he added.
The price target implies a P/E multiple of 25-times to Frankel’s $10.00 fiscal 2026 adjusted EPS. This multiple corresponds to the analyst’s AI Compute Group average of 25 times.
Frankel reiterated a buy rating Micron Technology, Inc (NASDAQ:MU) with a price target of $250.
Micron is one of Rosenblatt’s top picks for the first half of 2025, as he likes the big opportunity for DRAM material deployment in AI platforms going forward.
In particular, the analyst likes Micron’s HBM opportunity, where the trading ratio is 3-to-1 for DDR5 and moving to 4-to-1 with the move to HBM4, a structural shift Frankel noted elsewhere. Not witnessed in the memory cycle.
Industrial HBM supply remains an issue to watch as supply does not meet demand well into calendar 2025.
For Micron, Frankel’s view on HBM is more concerned with the overall impact of DRAM bit supply, with HBM3E achieving a 3-to-1 trade ratio and HBM4 a 4-to-1 trade ratio, creating an optimal supply and demand dynamic. is
Frankel notes Micron as an HBM share gainer in the HBM3E and HBM4 variants and as the segment moves from 8-Hi to 12-Hi and 16-Hi configurations, where power efficiency (a micron structural gain) becomes increasingly important. .
Frankel finds using the P/E to value Micron reasonably well, given its proven consistent profitability through cross-memory cycles, aggressive share buybacks, and a cycle driven by AI workload dynamics associated with DRAM content. The price target reflects the analyst’s mid-teens P/E multiple on $18 fiscal 2026 adjusted EPS.
