Unlocking the Future: Top Analyst Picks for AI and Next-Gen Tech Growth
As we step into 2025, the tech landscape is poised for a significant transformation. Rosenblatt’s top analysts, including Steve Frankel, have identified the most promising stocks that will drive this growth. Two companies stand out for their potential to revolutionize the industry: Advanced Micro Devices (NASDAQ:AMD) and Micron Technology (NASDAQ:MU).
The Rise of Artificial Intelligence
Advanced Micro Devices is a clear winner in the AI space, with its CPU and GPU share gains expected to continue into 2025. The company’s EPYC processors will drive revenue growth in server and Data Center CPUs, while its MI350 and MI400 GPUs will increase market share in hyperscale adoption, chiplet scale, and AI moving to the edge. Frankel maintains a Buy rating on AMD with a price target of $250, reflecting a 25-times P/E multiple to his $10.00 fiscal 2026 adjusted EPS.
Memory and Storage: The Backbone of AI
Micron Technology is another top pick, driven by the massive opportunity for DRAM content deployment in AI platforms. Frankel is particularly bullish on Micron’s HBM opportunity, where trade ratios are expected to shift from 3-to-1 to 4-to-1 with the move to HBM4. This structural shift will create a favorable supply and demand dynamic, making Micron an HBM share gainer in HBM3E and HBM4 varietals. The company’s power efficiency advantage will become increasingly important as the segment moves to 12-Hi and 16-Hi configurations. Frankel reiterated a Buy rating on Micron with a price target of $250, reflecting a mid-teens P/E multiple on his $18 fiscal 2026 adjusted EPS.
Price Actions and Analyst Ratings
At last check, AMD stock was up 4.70% at $124.82, while MU was down 0.78%. The analyst community is also bullish on these stocks, with several upgrades and Buy ratings in recent months.
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