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AMD’s stock is continuing to rise today, thanks in part to a positive market atmosphere and optimistic analyst assessments.
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Melius has upgraded its rating for AMD stock from “hold” to “buy,” boosting its annual price target from $110 to $175 per share.
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There seems to be growing demand for processors utilized in AI applications, which could be beneficial for AMD.
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Advanced Micro Devices (NASDAQ:AMD) saw its stock ascend in Monday’s trading, although it did retract some initial gains. By 3:15 PM, shares had climbed 1.1%. On that same day, the S&P 500 and Nasdaq Composite were both up by 0.7%.
Along with this upward trend in the market, AMD’s stock is receiving a boost from encouraging analyst coverage. Over the last three months, the stock has risen by 22%.
Melius initiated fresh coverage of AMD’s stock ahead of today’s market open, raising its recommendation from “hold” to “buy” and increasing its annual share price target from $110 to $175.
Merius is optimistic about AMD’s potential in the AI sector, believing that the demand for graphics processing units (GPUs) will play a crucial role in the company’s success. They anticipate increased investor enthusiasm for AMD’s prospects in GPU sales from 2026 to 2028, particularly pointing to the upcoming MI400 processor expected to launch next year.
Investors have been displaying increased confidence in AMD’s standing in the AI market. Recent advancements showcased at an AI conference hosted by the company have bolstered this outlook. The MI350 processor has reportedly made a strong debut, and the anticipated release of the MI400 chip could further strengthen AMD’s competitive edge. It seems unlikely that AMD will falter against Nvidia in the high-end GPU arena, especially as there may be more opportunities for success with less demanding processors in AI applications.
It’s worth considering these points before making any investment decisions regarding AMD.
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