The company is also positioned to capture double-digit market share in GPU compute and AI inference, thanks to its integration of Xilinx's technology and innovative chiplet design.

Overall, AMD has made significant strides in revenue growth, particularly in the CPU and GPU sectors within server and data center markets.

Rosenblatt analysts have identified AMD and Meta Platforms as top stock picks for the first half of 2025, highlighting their growth potential.

Meta Platforms has reported a remarkable 22% revenue increase in the first nine months of 2024, driven by AI-enhanced advertising innovations.

Rosenblatt forecasts that Meta will continue to experience revenue growth into 2025, supported by strong advertising performance and investments in AI infrastructure.

Rosenblatt projects a price target of $250 for AMD, based on a 25x P/E multiple of an estimated $10.00 FY26 EPS, despite the cyclical nature of the semiconductor industry.

However, analysts caution that AMD operates in a highly competitive and cyclical semiconductor market, where missteps could adversely affect its performance.

Upcoming GPU products, including the MI350 and MI400, are expected to drive revenue growth for AMD as they gain traction in hyperscale environments.

Steve Frankel maintains a Buy rating on both AMD and Micron Technology, each with a price target of $250, citing strong momentum in their respective markets.

While both companies face risks such as regulatory pressures for Meta and market volatility for AMD, Rosenblatt sees significant upside potential in the growing AI ecosystem.

AMD's EPYC processors are set to bolster the company's revenue share in the server and data center CPU markets.

Both AMD and Meta are recognized for their robust growth potential and solid financial performance, largely fueled by advancements in artificial intelligence.