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AMD stock has lagged behind the performance of the ICE Semiconductor Index.
Dreamstime
Benchmark says Advanced Micro Devices will be a big winner from the rising trend toward artificial intelligence.
On Wednesday, analyst Cody Acree reaffirmed his Buy rating for
AMD
stock (ticker: AMD) and raised his price target to $145 from $108.
“We believe AMD is among the best positioned companies to benefit from the tech sector’s broad macroeconomic adoption of Artificial Intelligence,” he wrote.
In Thursday trading, AMD stock is up 3.8% to $113.53.
Earlier this week, AMD reported modestly better-than-expected earnings for the June quarter, while providing a revenue outlook for the current quarter slightly below the consensus at the midpoint of its guidance range.
Acree was willing to overlook the mixed report because of AMD’s positive commentary about its latest traction in serving the AI market. On a conference call with investors and analysts, CEO Lisa Su said AMD expects the market for AI accelerators in data centers to reach over $150 billion by 2027. The analyst also noted AMD’s upcoming MI300 AI accelerator was on track to launch during the fourth quarter.
AMD Instinct accelerators are the company’s data-center chips, which are often used for AI applications.
“Customer interest in the company’s Instinct MI300A and MI300X GPUs was strong during the quarter, with engagements at top-tier cloud providers, large enterprises, and numerous leading AI companies significantly expanded in the quarter,” he wrote.
AMD stock has risen about 14% over the past 12 months, versus the 21% rise in the iShares Semiconductor exchange-traded fund (SOXX). The ETF tracks the performance of the ICE Semiconductor Index.
Write to Tae Kim at [email protected]
Source: https://www.barrons.com/articles/amd-stock-ai-price-557a0be6?siteid=yhoof2&yptr=yahoo