tops wall street Analysts have just taken down one of their boldest opinions on Advanced Micro Devices (AMD), achieving impressive stock price targets in the process.
Wells Fargo’s Aaron Lakers, a five-star analyst according to Tipranks, reiterated his assertion. too fat While setting the rating for AMD. Target price is $345 (loosely implied 49% increase from current price).
For reference, AMD stock is currently trading at the following prices: $231.83It’s not just the Lakers’ price target that is attracting attention.
UBS (Timothy Arcuri): Price increased from $265 to $300 (buy)-29.4% increase.
Piper Sandler (Harsh Kumar): Price increased from $240 to $280 (too fat)—20.8% increase;With enhanced visibility in data centers; A.I. trajectory.
KeyBanc (John Vin): $270 (upgrade to overweight)—16.5% increase Related to stronger demand outlook for server CPUs and AI accelerators.
morgan stanley: Price increased from $246 to $260 (equal weight)—12.2% increase;Perhaps the most cautious stance compared to the high bull target.
A price target like this is a breath of fresh air, and it looks like AMD stock is finally enjoying its value.
We’ve covered AMD and other AI stocks, but it’s safe to say the company has always played a secondary role. Nvidia (NVDA).
However, Nvidia boasts market share somewhere in between 70% to 90% in the AI chip space.
However, this goes far beyond chips, as Nvidia’s AI moat extends across the stack, reducing customer incentives to switch.
Nevertheless, that narrative is changing, and AMD can’t believe it Last year was 96%beat the broader market 17% increase (NVIDIA stock rose 40% last year).
in last month Only AMD’s stock price has returned. 11%while other AI stocks are struggling.
This puts more weight behind the Lakers’ seemingly aggressive stock price target. He argues that this is not about a single product cycle, and that AMD continues to run its entire core business while preparing for multi-year data center and AI expansions.
Lisa Su, Chairman and CEO, Advanced Micro Devices Inc.Photo by Bloomberg, Getty Images · Photo by Bloomberg, Getty ImagesRakers argues that AMD will maintain solid CPU leadership while gaining market share, and that this dynamic will continue to provide a durable revenue base.
Other AI stocks:
At the same time, I feel that AMD’s AI story is becoming more and more concrete.
A big part of that is a stronger positioning across its data center GPU portfolio and a broader systems strategy to catch up with Nvidia.