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Rosenblatt Analysts Favor AMD and Meta for 2025

Rosenblatt analysts noted on Monday that Advanced Micro Devices (NASDAQ: AMD) and Meta Platforms (NASDAQ: META) are among their top stock picks for the first half of 2025, highlighting transformative growth opportunities in artificial intelligence (AI) and strong financial performance.

AMD

AMD is recognized as a standout performer due to its increasing market share in CPUs and GPUs, as well as its role in AI inference at the edge.

• Revenue Growth: AMD’s EPYC processors are expected to significantly enhance the company’s revenues in server and data center CPUs.
• GPU Pipeline: The upcoming MI350 and MI400 GPUs are anticipated to gain traction with hyperscale adoption and chiplet scalability.
• Valuation: Rosenblatt values AMD at a price target of $250, applying a 25x P/E multiple on a projected FY26 EPS of $10.00.
• Caution: Analysts warn of risks in AMD’s competitive and cyclical semiconductor industry, where execution issues or economic downturns could affect its performance.

Meta

Meta Platforms is undergoing an “impressive and durable AI-driven growth renaissance,” according to Rosenblatt analysts.

• Revenue Surge: The firm reported a 22% revenue increase in the first nine months of 2024, fueled by AI-driven advertising innovations enhancing ad efficiency and user engagement.
• Sustained Growth: Revenue growth is expected to continue into 2025, supported by strong ad performance and AI infrastructure investments.
• Financial Projections: Meta's adjusted EBITDA margins are projected to rise to 62.6% in 2025, with a price target of $811, based on a 29x multiple of 2025E EPS.
• Risks: Although both stocks carry risks—regulatory pressures for Meta and market volatility for AMD—Rosenblatt sees significant upside potential as these companies leverage the expanding AI landscape.