Rosenblatt polled its analysts, including Steve Frankel, gathering their top picks for the first half of 2025. The stocks reflect key themes across its research universe, including the Age of Artificial Intelligence and next-generation broadband expansion.
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 on momentum in CPU and GPU share gains into 2025 and a broader non-AI recovery exiting 2025.
The difference coming into 2025 is that the Street recognizes this dynamic, which has legs for double-digit market share in GPU computing and AI collection at the edge, as it is a secular opportunity on Xilinx's incumbent and ability chips
AMD's EPYC processors will likely continue to increase the company's revenue share in server CPUs and Data Centers as the business proposition is significant, the analyst said.
AMD's MI350 in 2025 and MI400 in 2026 GPUs will drive additional revenue and increased market share on hyperscale adoption, chiplet scale, and AI moving to the edge, he added.
The price target reflects a 25 times P/E multiple to adjusted EPS of $10.00 in Frankel's fiscal 2026. This multiple is in line with the analyst AI accounting group average of 25 times.
Frankel reiterated a Buy rating on Micron Technology, Inc (NASDAQ:IN) 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 to use DRAM content in AI platforms going forward.
In particular, the analyst liked Micron's HBM opportunity, where the trade ratios are 3-to-1 for DDR5 and move to 4-to-1 with the move to HBM4, Frankel did not see a structural shift in any circle another memory.
The industry's HBM supply remains an issue to watch as supply is not catching up with demand well into the 2025 calendar.
For Micron, Frankel's view on HBM is more related to the overall implications of DRAM bit supply, with HBM3E garnering a 3-to-1 trade ratio and HBM4 a 4-to-1 trade ratio, creating a favorable supply and demand dynamic.
Frankel identified Micron as the HBM share winner in HBM3E and HBM4 variants and as the segment moves from 8-Hi to 12-Hi and 16-Hi configurations, where power efficiency (Micron's structural advantage) becomes increasingly important.
Frankel found that using P/E to value Micron was reasonable, given its proven consistent profitability through cross-memory cycles, aggressive share buybacks, and a cycle driven by AI workload dynamics that match DRAM content. The price target reflects the analyst's mid-teens P/E multiple on adjusted EPS of $18 fiscal 2026.