After a rough few days on the market, analysts are using weakness as opportunity in some of the top stocks. In fact, here are three they just rated as a buy.
Advanced Micro Devices (AMD)
Loop Capital just initiated a buy rating on AMD with a $175 price target. The firm says AMD has “dominant revenue exposure to mature end markets.”
AMD is also technically oversold at $117.20. And it’s over-extended on RSI, MACD and Williams’ %R. From its last traded price of $117, we’d like to see it initially retest $140 a share.
Helping, AMD is exposed to a multi-billion-dollar addressable market for data center AI chips. In fact, according to company Chair and CEO Lisa Su, that addressable market for AI chips will reach $500 billion by 2028, which is up from her prior estimate for $400 billion by the time 2027 rolls around.
“This is roughly equivalent to the annual sales for the entire semiconductor industry in 2023. Su is optimistic about the long-term market size potential for AI chips, and believes that AI demand has exceeded the company’s expectations over the past year,” as noted by Barron’s.
Plus, the company’s latest generation of AI chips, the MI300, is its fastest ramping product ever. Lisa Su added that AMD’s MI300X chip—which rivals dominant AI chipmaker Nvidia’s H100 is “the most advanced AI accelerator in the industry,” as noted by Time.com.
Meta Platforms (META)
Goldman Sachs just reiterated a buy rating on META ahead of earnings.
According to the firm, “We believe META mgmt. remains focused on long-term opportunities (artificial intelligence & Reality Labs), with an increased focus on aligning investments across a world-class compute infrastructure, open-source software initiatives and a raised range of forward capex.”
META also looks interesting after a brief pullback to its 50-day moving average at just under $600 a share. From here, we’d like to see META initially retest $640.
Alphabet (GOOG)
Bank of America also reiterated a buy on Alphabet, raising its price target to $225 from $210.
The firm noted, “With search still far overshadowing value of other businesses, we view 2025 as a pivotal year, which could help establish Google as either an Al leader (via AI Overview traction) or see elevation in search disruption risk.”
Technically, GOOG is consolidating at around $190 a share at the moment. From here, we’d like to see it break higher with an initial retest of $200 a share.