Investing.com -- Chipmaker Advanced Micro Devices (NASDAQ: AMD) is likely to see revenue and post-tax profit improve in the second half of 2024 thanks in part to a ramp-up in demand for its MI300X artificial intelligence processors, according to analysts at Phillip Securities.

Wall Street has soaring expectations for AMD's AI ambitions, particularly in the wake of the success of rival Nvidia's (NASDAQ: NVDA) semiconductors that have become integral in a recent boom of interest in the nascent technology.

Last week, AMD said it now expects AI chip sales will be around $4 billion this year, representing a $500 million uptick from its previous estimate. Even still, investors were projecting an even greater forecast.

Shares in AMD slipped as a result and have now shed more than 3% of their value over the past five sessions.

In a note to clients, the Phillip Securities analysts said that these recent movements in the stock have led them to raise their rating of AMD to "Buy" from "Accumulate."

"We believe AMD will benefit from increasing AI-related investments while also gaining traditional server market share from enterprise transition to the Cloud," the analysts said.

They added that customers are "seeing better inferencing performance" AMD's MI300X as compared to Nvidia's H100 AI-optimized chip.

The analysts also said that they expect AMD to deliver "significant market share gains" in personal computing due to "strong" demand for its line of central processors from clients like Acer and HP.