AMD's (AMD) Pensando Buy Explained - JPMorgan

JPMorgan analyst Harlan Sur reiterated a Neutral rating and $140.00 price target on AMD (NASDAQ: AMD) noting the acquisition of Pensando brings SmartNIC/DPU capabilities to AMD’s cloud/data center solutions portfolio.

The analyst stated "Pensando’s SmartNIC solution features a fully programmable packet processor and software stack that accelerates network, security, storage, and monitoring functionality within the data center by offloading these house-keeping tasks from the CPU, thereby eliminating a critical performance bottleneck. The addition of SmartNICs allows AMD to offer a complete solutions portfolio that deals with all critical functions within a data center environment, including general purpose processing, AI/ML processing, acceleration, and now, network/security/storage/monitoring. Pensando’s distributed services cards (DSC) and switches (DSS) compete with off-the-shelf DPU/SmartNIC solutions from Marvell Technology (NASDAQ: MRVL) (LiquidIO), NVIDIA (NASDAQ: NVDA) (BlueField), Broadcom (NASDAQ: AVGO) (Stingray), and Intel (NASDAQ: INTC) (Mount Evans IPU), as well as with custom/semicustom ASIC solutions from Broadcom and Marvell that are currently utilized by top cloud/hyperscalers."

For an analyst ratings summary and ratings history on AMD click here. For more ratings news on AMD click here.

Shares of AMD closed at $110.53 yesterday.

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