AMD and Meta Platforms top picks at Rosenblatt By Investing.com

Investing.com – Rosenblatt analysts said in a note on Monday that Advanced Micro Devices (NASDAQ:) and Meta Platforms (NASDAQ:) are two of their top stock picks for the first half of 2025, citing transformative growth opportunities in the artificial intelligence space Intelligence (AI). ) and solid financial performance.

AMD

AMD is highlighted as a front-runner due to its growing market share in CPUs and GPUs and its position in AI inference.

“AMD’s EPYC processors will further increase the company’s revenue share in server and data center CPUs,” Rosenblatt analysts noted.

Additionally, they state that the GPU pipeline, including the upcoming MI350 and MI400, is expected to gain momentum through hyperscale adoption and chiplet scalability.

The company expects AMD to benefit from long-term trends in AI and a broader recovery in the non-AI market. With a price target of $250, Rosenblatt values ​​AMD at a 25x P/E multiple with forecast FY26 EPS of $10.00.

But analysts warn about the risks in AMD’s highly competitive and cyclical semiconductor industry, where missteps in execution or economic slowdowns could hurt performance.

Meta

Meta Platforms is experiencing what Rosenblatt calls an “impressive and lasting renaissance of AI-driven growth.”

They note that revenue increased 22% in the first nine months of 2024, driven by advertising innovations that leverage AI to improve advertising efficiency, daily user engagement and campaign effectiveness.

Rosenblatt expects Meta’s revenue growth to continue through 2025, supported by robust ad performance and investments in AI infrastructure.

The company forecasts Meta’s adjusted EBITDA margins to increase to 62.6% in 2025, with a price target of $811 based on a 29x 2025 EPS multiple.

While both stocks face risks – from regulatory pressure for Meta to market volatility for AMD – Rosenblatt sees major upside potential for investors as these companies benefit from the growing AI ecosystem.