Semiconductor major Advanced Micro Devices, Inc. (NASDAQ: AMD), popularly known as AMD, recently revealed that it has partnered with Meta Platforms (NASDAQ: FB) to enable the development of multiple Evenstar radio units (RUs) for the expansion of 4G/5G global mobile network infrastructure.
Shares of AMD closed almost 2% down at $86.85 on Wednesday, but this fall can be attributed to wider market concerns.
Meta’s Evenstar program is an initiative between operators and technology partners to build adaptable, efficient and metaverse-ready radio access network (RAN) reference designs for 4G and 5G networks in the Open RAN ecosystem.
To that end, this partnership between AMD’s Xilinx Zynq RFSoC architecture with Meta’s Evenstar Rus will allow radio vendors to meet a wide range of requirements, leverage the platform and take advantage of market opportunities.
The Vice-President of Data Center and Communications Group at AMD, Dan Mansur, said, “The development of Evenstar radios with our adaptive radio technology inside is a significant achievement for AMD. We are proud to be an ecosystem partner with Meta Connectivity and look forward to continuing our collaborative designs for Evenstar to deliver flexible, scalable, and efficient wireless solutions.”
Recently, KeyBanc analyst John Vinh reiterated a Buy rating on the stock with a price target of $150, which implies upside potential of 70.6% from current levels.
The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 14 Buys and 10 Holds. AMD’s average price target of $132.40 implies that the stock has upside potential of 50.6% from current levels. Shares have gained 17.8% over the past year.
Hedge Funds Confident
Overall, the TipRanks’ Hedge Fund Trading Activity tool shows that hedge fund confidence in AMD is currently Very Positive. Moreover, the cumulative change in holdings across all 12 hedge funds that were active in the last quarter was an increase of 3.9 million shares.
AMD’s partnership with a fellow technological giant like Meta to improve 4G/5G Radio Access Network Solutions is strategic as reliable internet connectivity is becoming a pertinent part of our daily lives. The move is also expected to be beneficial for the company.
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