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Rosenblatt polled its analysts, including Steve Frankel, who put together their top picks for the first half of 2025. The stocks reflect key themes in its research universe, including the age of artificial intelligence and the creation of the new generation broadband.
Steve Frankel maintained a Buy rating on 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 in terms of driving CPU and GPU share gains in 2025 and a broader non-AI recovery from 2025 onwards.
The difference going into 2025 is that the Street recognizes this dynamic, which has legs for double-digit market share in GPU computing and AI inference at the edge, being a secular opportunity for the incumbent to Xilinx and the chiplet dexterity.
AMD’s EPYC processors will likely continue to increase the company’s revenue share in server and data center CPUs as the business proposition is significant, the analyst said.
AMD’s MI350 GPUs in 2025 and MI400 in 2026 will generate additional revenue and increase market share in the adoption of hyperscale, chiplet scale and edge AI, he added.
The target price reflects a P/E multiple of 25 times Frankel’s $10.00 adjusted EPS in fiscal 2026. This multiple is in line with the analyst AI calculation group average of 25 times.
Frankel reiterated a Buy rating at Micron Technology, Inc (NASDAQ:EN) with a price target of $250.
Micron is one of Rosenblatt’s top picks for the first half of 2025, as he liked the big opportunity for DRAM content deployment in AI platforms going forward.
In particular, the analyst liked Micron’s HBM opportunity, where trading ratios are 3-to-1 on DDR5 and went to 4-to-1 with the move to HBM4, a structural shift that Frankel didn’t witness. in no other memory cycle.
The industry’s supply of HBM remains an issue to watch out for, with supply falling short of demand through the 2025 calendar year.
For Micron, Frankel’s view on HBM is more related to the overall DRAM bit supply implications, with HBM3E getting a 3-to-1 trade ratio and HBM4 a 4-to-1 trade ratio, creating a favorable dynamic of supply and demand.
Frankel noted that Micron was gaining HBM share in the HBM3E and HBM4 varieties and as the segment moves from 8-Hi to 12-Hi and 16-Hi configurations, where energy efficiency (a Micron structural advantage) is increasingly important.
Frankel found it reasonable to use P/E to value Micron, given its proven consistent profitability through cross-memory cycles, aggressive share buybacks and a cycle driven by AI workload dynamics that correlates with DRAM content. The price target reflects a mid-year P/E multiple over the analyst’s fiscal 2026 adjusted EPS of $18.
