Chart of Day: Revisiting Advanced Micro Devices (AMD)
Just a few weeks ago, we noted:
“After a brief pullback, shares of Advanced Micro Devices (AMD) are just starting to pivot higher again. Last trading at $157.10, we’d like to see the stock test $175, near-term. Helping, AMD Executive Vice President and Chief Commercial Officer, Philip Guido bought 8,800 shares of the stock for just under $1 million.”
Fast forward, and AMD just hit $174.95—right in line with that projection. Now, we’re raising our target to $200.
Analyst Support
Adding fuel to the move, analysts at Benchmark reiterated their Buy rating and raised their price target to $210 from $170, citing strong earnings growth.
Strong Earnings Momentum
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Revenue: $7.685 billion, up 32% year-over-year and 3% quarter-over-quarter
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Beat Expectations: $270 million above Wall Street estimates of $7.415 billion
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Forward Guidance: $8.7 billion expected, up 13% QoQ and 28% YoY, beating analyst forecasts of $8.32 billion
AI Growth Story
Beyond earnings, AMD’s long-term opportunity lies in AI. According to Chair and CEO Lisa Su, the addressable market for AI chips will reach $500 billion by 2028, up from prior estimates of $400 billion by 2027.
AMD’s MI300 series is its fastest-ramping product ever. The MI300X chip, which competes with Nvidia’s H100, has been called “the most advanced AI accelerator in the industry” by Time.com.
Bottom Line
With strong earnings, bullish analyst upgrades, and explosive growth potential in AI chips, AMD remains a top name to watch. The next target: $200.
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