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AI Stocks Soar: AMD, Microsoft, Nvidia Shine
17 May
Summary
- AMD data center division is the primary growth driver.
- Microsoft's Azure and AI tools fuel high-margin growth.
- Nvidia expects over $1 trillion in Blackwell/Rubin revenue.
The artificial intelligence boom continues to captivate investors, with Wall Street analysts highlighting promising stocks. Advanced Micro Devices (AMD) is experiencing strong demand in its data center division, now viewed as its primary growth engine. Analyst Joshua Buchalter has reiterated a buy rating, citing AMD's significant acceleration in server growth and a doubled CPU total addressable market estimate to $120 billion.
Microsoft's growth is propelled by its Azure cloud unit and AI-driven productivity tools. Analyst Ivan Feinseth maintains a buy rating, emphasizing Azure's high-30% growth and the company's substantial commercial cloud backlog of $625 billion. Feinseth notes AI's increasing role as a structural growth driver, integrating Copilot across its offerings to enhance revenue and customer retention.
Nvidia is poised for continued success with its AI GPUs. Ahead of its fiscal first-quarter results on May 20, Christopher Rolland reiterated a buy rating and raised his price target. Nvidia now expects over $1 trillion in combined Blackwell and Rubin revenue through calendar year 2027, with the Rubin platform on track for a second-half 2026 launch.
