Is AMD Stock on the Path to Reach $190? Analyst Forecasts Positive Uptrend

Tuesday, 14 May 2024, 09:45
The rise in demand for semiconductors and AI chips is expected to benefit AMD as it experiences mixed Q1 growth. Jefferies analyst predicts a strong upcycle in the semiconductor industry and increased demand for AI chips, setting a buy rating and a price target of $190, indicating a 25% upside potential. While AMD faces challenges in gaming and embedded markets, its position in AI-driven sectors like data center CPUs and PC market sets up for potential growth amidst intense competition.
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Is AMD Stock on the Path to Reach $190? Analyst Forecasts Positive Uptrend

AMD Stock Outlook

Rising demand for semiconductors and AI chips should benefit AMD. The first-quarter report revealed strong performance in data center and PC segments, driven by AI and market resurgence. However, gaming and embedded segments reported declining revenue.

Growth Opportunities

  • AMD making strides in AI chip market against Nvidia
  • Anticipated revenue growth from latest MI300 data center GPUs
  • Strong competition with Intel in data center CPU market
  • Offering PC CPUs with built-in AI accelerators for performance boost

Stock Evaluation

  1. Stock trading at more than 40 times forward earnings
  2. Analyst sets a price target of $190, signifying a 25% upside potential

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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