Rosenblatt The company polled its analysts, including Steve Frankel, and compiled their top picks for the first half of 2025. The stocks reflect key themes across its research universe, including the age of artificial intelligence and building the next generation of broadband.
Steve Frankel maintained a Buy rating at Advanced Micro Devices Company (NASDAQ:AMD) has a price target of $250.
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AMD is one of Rosenblatt’s top picks for the first half of 2025 thanks to momentum in CPU and GPU share gains through 2025 and a broader non-AI recovery after 2025.
The difference going into 2025 is that the Street is recognizing this dynamic, which has legs for double-digit market share in GPU computing and AI inference at the edge, being a secular opportunity to fill Xilinx’s position and its microchip prowess.
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 important, the analyst said.
He added that AMD’s MI350 GPUs in 2025 and MI400 in 2026 will drive additional revenue and increased market share through widespread adoption, chipset volume, and the move to artificial intelligence.
The price target reflects a P/E multiple of 25 times Frankel’s adjusted EPS of $10.00 for fiscal 2026. This multiple is in line with the analyst’s AI Computing Group average of 25 times.
Frankel reiterated a Buy rating on Micron Technology Corporation (NASDAQ:MU) with a price target of $250.
Micron is one of Rosenblatt’s top picks for the first half of 2025, as he likes the significant opportunity to deploy DRAM content in AI platforms going forward.
In particular, the analyst was impressed by Micron’s HBM opportunity, with trade ratios being 3-to-1 to DDR5 and moving to 4-to-1 with the move to HBM4, a structural shift that Frankel has not seen in any other memory cycle.
HBM industry supply remains an issue to monitor as supply is not keeping up with demand well in calendar 2025.
For Micron, Frankel’s view on HBM has more to do with the overall implications for DRAM bit supply, with HBM3E having a 3-to-1 trading ratio and HBM4 having a 4-to-1 trading ratio, creating a favorable supply and demand dynamic.
Frankel noted that Micron is a winner in HBM shares in the HBM3E and HBM4 grades and as the segment moves from 8-Hi to 12-Hi and 16-Hi configurations, energy efficiency (a structural advantage of Micron) becomes increasingly important.
Frankel finds using P/E to value Micron reasonable, given its consistent profitability proven through cross-memory cycles, aggressive stock buybacks, and a cycle driven by AI workload dynamics associated with DRAM content. The price target reflects a mid-teens P/E multiple on analyst-adjusted EPS of $18 for fiscal 2026.