AMD and Micron are top analysts for AI and next-generation technology growth

Rose petal surveyed its analysts, including Steve Frankel, on their top picks for the first half of 2025. The stocks reflect key themes across the research universe, including the age of artificial intelligence and the buildout of next-generation broadband.

Steve Frankel maintained his 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 due to momentum in CPU and GPU share gains through 2025 and a broader non-AI recovery from 2025.

The difference as we enter 2025 is that the Street recognizes this momentum, which secures double-digit market share in GPU computing and AI inference at the edge and represents a long-term opportunity for Xilinx’s established position and chiplet capabilities.

AMD’s EPYC processors are likely to further increase the company’s revenue share in server and data center CPUs as the business offering is significant, the analyst said.

AMD’s MI350 in 2025 and MI400 in 2026 GPUs will drive incremental sales and increased market share as hyperscale device adoption, chiplet scaling and moving AI to the edge, he added.

The price target reflects a 25x P/E multiple of Frankel’s fiscal 2026 adjusted EPS of $10.00. This multiple corresponds to the analyst’s AI calculation group average of 25.

Frankel reiterated his buy recommendation Micron Technology, Inc (NASDAQ:MU) with a price target of $250.

Micron is one of Rosenblatt’s top picks for the first half of 2025 because he likes the big opportunity for future DRAM content deployment on AI platforms.

The analyst particularly liked Micron’s HBM opportunity, where trading ratios are 3-to-1 on DDR5 and rising to 4-to-1 with the move to HBM4, a structural change that Frankel has not seen in any other memory cycle.

The industry’s HBM supply remains an issue to monitor, as supply will not be able to keep up with demand well into the 2025 calendar year.

For Micron, Frankel’s position on HBM is more related to the general impact of DRAM bit supply, with HBM3E achieving a 3 to 1 trading ratio and HBM4 achieving a 4 to 1 trading ratio, resulting in favorable supply and demand dynamics.

Frankel called Micron an HBM share winner in HBM3E and HBM4 grades and in the segment’s transition from 8-Hi to 12-Hi and 16-Hi configurations where energy efficiency (a Micron structural advantage) is becoming increasingly important becomes.

Frankel thought it made sense to use the P/E ratio to value Micron because the company has a proven track record of consistent profitability through cross-memory cycles, aggressive stock repurchases, and a cycle that depends on AI workload dynamics related to DRAM content . The price target reflects a mid-teens P/E ratio on the analyst’s adjusted earnings per share of $18 for fiscal 2026.

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