Rosenblatt Securities recently surveyed its analysts to identify their top stock picks for the first half of 2025. The resulting selections highlight key investment themes, including the rise of artificial intelligence (AI) and the ongoing development of next-generation broadband infrastructure. Among the standouts are Advanced Micro Devices, Inc. (NASDAQ: AMD) and Micron Technology, Inc. (NASDAQ: MU), both championed for their potential within these burgeoning sectors.
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AMD: Poised for CPU and GPU Market Share Expansion
Analyst Steve Frankel reiterated a Buy rating on AMD with a price target of $250, driven by anticipated momentum in CPU and GPU market share gains throughout 2025 and a broader non-AI market recovery expected to emerge later in the year.
Frankel argues that the market is now recognizing AMD’s potential for substantial growth, particularly in GPU compute and AI inference at the edge. This presents a long-term opportunity, leveraging the company’s acquisition of Xilinx and its expertise in chiplet technology. Furthermore, AMD’s EPYC processors are expected to continue capturing a larger share of the server and data center CPU market due to their compelling value proposition.
Looking ahead, Frankel anticipates that AMD’s MI350 and MI400 GPUs, slated for release in 2025 and 2026 respectively, will further fuel revenue growth and market share expansion. These advancements will be driven by hyperscale adoption, chiplet scalability, and the increasing trend of AI processing moving to the edge. The $250 price target is based on a 25x price-to-earnings (P/E) multiple applied to Frankel’s estimated fiscal 2026 adjusted earnings per share (EPS) of $10.00. This multiple aligns with the average for Rosenblatt’s AI compute group.
Micron: Riding the Wave of AI-Driven DRAM Demand
Micron also received a Buy rating from Frankel, with a price target of $250. This positive outlook stems from the significant potential for DRAM content deployment in future AI platforms. Frankel highlighted Micron’s promising prospects in the High Bandwidth Memory (HBM) market, where trade ratios are currently 3:1 compared to DDR5 and are projected to reach 4:1 with the transition to HBM4. This represents a fundamental shift that Frankel believes is unique to this memory cycle. While industry-wide HBM supply constraints are expected to persist well into 2025, Frankel views this as a positive indicator for Micron’s overall DRAM bit supply dynamics.
The increasing trade ratios for HBM3E and HBM4, combined with the move towards more power-efficient 12-Hi and 16-Hi configurations (an area where Micron holds a structural advantage), position the company for significant share gains in the HBM market. Frankel believes that a P/E-based valuation is appropriate for Micron, given its consistent profitability across memory cycles, active share buyback program, and the correlation between AI workload dynamics and DRAM content. The $250 price target reflects a mid-teens P/E multiple applied to his estimated fiscal 2026 adjusted EPS of $18.
Conclusion: A Bullish Outlook for Semiconductor Leaders
Rosenblatt’s endorsement of AMD and Micron underscores the firms’ strategic positioning within the rapidly evolving technology landscape. Their focus on AI, high-performance computing, and next-generation memory solutions positions them for continued growth in the coming years. While supply chain challenges and broader market volatility remain potential headwinds, the long-term outlook for both companies appears promising.
