Rosenblatt's Top Picks: AMD and Meta Set for AI-Driven Growth in 2025

In the rapidly evolving landscape of artificial intelligence (AI), two tech giants have emerged as top stock picks for 2025, according to Rosenblatt analysts. Advanced Micro Devices (AMD) and Meta Platforms (META) are poised for significant growth, driven by AI innovations and expanding market share. This article delves into the reasons behind these picks and the potential impact on investors.



Advanced Micro Devices (AMD)

AMD's expanding market share in central processing units (CPUs) and graphics processing units (GPUs) is set to drive substantial revenue growth in 2025. The company's Epyc CPUs in the server and data center segment, as well as its M1350 and M1400 GPUs, are expected to perform strongly. Rosenblatt analysts anticipate a 25x P/E multiple for an FY26 EPS of $10.00, resulting in an AMD price target of $250. However, the competitive and cyclical nature of the semiconductor industry may pose challenges to AMD's performance.



AMD's EPYC processors and MI350 GPUs are crucial for driving the company's data center and AI growth in 2025. The EPYC processors, with their high core counts and advanced architecture, enable AMD to compete effectively in the server market, particularly in high-performance computing and cloud environments. Meanwhile, the MI350 GPUs, with their enhanced performance and efficiency, cater to the growing demand for AI workloads in data centers. As AI adoption continues to rise, AMD's offerings in these areas will be crucial in capturing market share and driving revenue growth.

Meta Platforms (META)

Meta's AI-driven revenue growth, particularly through AI-led innovations in advertising, is expected to significantly impact its financial performance in 2025. According to Rosenblatt, adjusted EBITDA margins will grow to 62.6% in 2025, driven by AI-led innovations in advertising. This growth is projected to be supported by Meta's ongoing investments in generative artificial intelligence technologies housed under Amazon Web Services. As a result, Meta's price target has been raised to $811, reflecting the firm's solid fundamentals and strong AI-driven growth prospects.



In conclusion, Rosenblatt's top stock picks for 2025, AMD and Meta, are well-positioned to capitalize on the growing AI market. Their expanding market share and innovative products make them attractive investments for those looking to capitalize on the AI revolution. However, investors should remain aware of the competitive and cyclical nature of the semiconductor industry and the potential risks associated with AI-driven growth. As always, thorough research and careful consideration are essential before making any investment decisions.