Analysts continue to discuss advanced microdevices and Nvidia

• The CEO of AMD (AMD) predicts the company will capture a double-digit share of the data center AI market within three to five years.

• AMD expects its data center business to grow 80% annually and reach $1 trillion in revenue by 2030.

• AT&T (T) moved up to overweight on KeyBanc with a $30 target after recent weakness on overblown competitive concerns.

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Advanced Microdevices (NASDAQ:AMD) It’s exploding this morning. Up $14, or 6% premarket, and 9.20% at 11 a.m.

All after CEO Lisa Su said AMD could reach a “double-digit” share of the data center AI market over the next three to five years. Right now, that market is dominated by Nvidia, which owns about 90% of that market.

Adding to the momentum, Wells Fargo just raised its AMD price target to $345 and assigned it an Overweight rating. This is due to AMD gaining market share and the CEO’s prediction of compound annual revenue growth of around 35%, as well as insatiable demand for AI chips.

Additionally, he said AMD’s data center business is expected to grow about 80% per year, and is on track to reach billions of dollars in sales by 2027. By 2030, AMD expects AMD data center revenue to reach $1 trillion per year.

AMD isn’t the only one seeing action this morning.

Nvidia (NASDAQ: NVDA): TD Cowen reiterated his buy rating on the tech giant due to the likely strength of Blackwell Ultra’s rise. Additionally, Citi reiterated a buy rating on the stock, with a price target of $220 from $210. The firm expects NVDA to post sales of $56.8 billion, compared to analyst expectations of $54.6 billion.

Bank of America analysts just reiterated a buy rating for Nvidia. The firm says NVDA is well positioned for healthcare and artificial intelligence. “Nvidia, a leader in accelerated computing, has expanded its reach into compute-intensive healthcare workloads and continues to engage in partnerships on the application side,” they said, quoted by CNBC.

Additionally, according to UBS analysts, Nvidia will guide fourth-quarter revenue to a range of $63 billion to $64 billion. At the moment, the company has a buy rating with a price target of $235.

AT&T (NYSE: T): Analysts at KeyBanc Capital Markets just upgraded AT&T to an Overweight rating with a $30 price target. The firm said the telecom giant looks even more attractive after the decline, especially with the stock’s strong return on capital.

If you don’t know, the stock was hit by “overblown” concerns about the battle for mobile subscribers. However, the company managed to allay some of those concerns after reporting better-than-expected subscriber additions. “We believe the recent pullback was driven by concerns related to competition in the wireless sector and is overblown,” they said, quoted by CNBC. “We maintain that with AT&T’s strategic positioning, growth prospects and return on capital, a historical average multiple is justified.”

In short, weakness appears to be an opportunity for AT&T stock.