Analysts revise target price for AMD stock
In 2024, Nvidia has been grabbing headlines for its cutting-edge semiconductor technology, pivotal role in the AI boom, and impressive stock market performance. However, let’s not overlook another major player in the chip-making industry, Advanced Micro Devices (AMD).
While AMD may not have seen the same growth as its biggest competitor, the stock has consistently outperformed the S&P 500 index, currently sitting at a 17.19% gain year-to-date. Analysts believe that AMD has even more potential for growth, as indicated by the price targets set for its shares and recent rating revisions.
Throughout the first 10 days of June, there have been several revisions to AMD’s price targets. CFRA analysts reiterated their ‘buy’ rating and set a price target of $200, representing a 23.16% increase from the current price. Following suit, Bank of America and TD Cowen also provided bullish outlooks for AMD, with price targets of $195 and $200, respectively. Citi offered a more conservative estimate of $176 for the stock over the next 52 weeks.
On June 10, Susquehanna and Morgan Stanley both reaffirmed positive sentiments towards AMD, with price targets of $200 and $176, respectively. Despite the optimism, some caution against overly high expectations for AMD’s AI business, suggesting that the stock may not be able to sustain a premium valuation.
Overall, analyst consensus remains bullish on AMD, with a ‘strong buy’ rating on TipRanks. Out of 35 represented analysts, 28 recommend buying AMD stock, while 7 are neutral. The average price target indicates a potential 17.64% increase to $191.03 over the next 12 months, with some predicting a high of $235 and a low of $140.
In conclusion, while Nvidia has been dominating the headlines, AMD is quietly making strides in the semiconductor industry and is poised for further growth in the coming months. Investors should consider the potential of both companies when making investment decisions.
