Rosenblatt polled its analysts, together with Steve Frankel, gathering their high picks for the primary half of 2025. The shares mirror key themes throughout its analysis universe, together with the Age of Synthetic Intelligence and the build-out of next-generation broadband.
Steve Frankel maintained a Purchase score on Superior Micro Gadgets, Inc (NASDAQ:AMD) with a value goal of $250.
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AMD is one in every of Rosenblatt’s high picks for the primary half of 2025 on momentum in CPU and GPU share positive aspects into 2025 and a broader non-AI restoration exiting 2025.
The distinction coming into 2025 is that the Avenue acknowledges this dynamic, which has legs for double-digit market share in GPU compute and AI inference on the edge, being a secular alternative on Xilinx incumbency and chiplet prowess.
AMD’s EPYC processors will possible proceed growing the corporate’s income share in server and Information Heart CPUs because the enterprise proposition is critical, the analyst stated.
AMD’s MI350 in 2025 and MI400 in 2026 GPUs will drive further revenues and elevated market share on hyperscale adoption, chiplet scale, and AI shifting to the sting, he added.
The worth goal displays a 25-times P/E a number of to Frankel’s $10.00 fiscal 2026 adjusted EPS. This a number of is consistent with the analyst’s AI compute group common of 25 instances.
Frankel reiterated a Purchase score on Micron Expertise, Inc (NASDAQ:MU) with a value goal of $250.
Micron is one in every of Rosenblatt’s high picks for the primary half of 2025, as he preferred the large alternative for DRAM content material deployment in AI platforms going ahead.
Particularly, the analyst preferred Micron’s HBM alternative, the place the commerce ratios are 3-to-1 to DDR5 and shifting to 4-to-1 with the transfer to HBM4, a structural shift Frankel didn’t witness in every other reminiscence cycle.
Trade HBM provide continues to be a difficulty to observe as provide doesn’t catch as much as demand nicely into calendar 2025.
For Micron, Frankel’s viewpoint on HBM is extra associated to the general implications of DRAM bit provide, with HBM3E garnering a 3-to-1 commerce ratio and HBM4 a 4-to-1 commerce ratio, creating a positive provide and demand dynamic.
Frankel famous Micron as an HBM share gainer in HBM3E and HBM4 varietals and because the phase strikes from 8-Hello to 12-Hello and 16-Hello configurations, the place energy effectivity (a Micron structural benefit) turns into more and more vital.
Frankel discovered utilizing P/E to worth Micron cheap, given its confirmed constant profitability via cross-memory cycles, aggressive share buybacks, and a cycle pushed by AI workload dynamics correlating to DRAM content material. The worth goal displays a mid-teens P/E a number of on the analyst’s $18 fiscal 2026 adjusted EPS.
