Leader in the processor production industry, Advanced Micro Devices, Inc. (NASDAQ: AMD). After experiencing a volatile month in October, this asset is going through a steady phase, which sees its stock steadily gaining in value.
October saw a dip below the $100 threshold for the AMD stock, a notable difference from June, where it peaked at $132 per share.
After an announcement from its CEO, Lisa Su, that “ the company expects GPU revenue of about $400 million during the fourth quarter, and to top $2 billion in 2024,” stock value rose by 9%.
This valuation was guided by the fact that analysts, most notably Evan, are expecting a breakthrough from AMD into the AI market, which is currently ruled by Nvidia(NASDAQ: NVIDIA). They are backing their arguments with a claim that AMD is one of only a handful of companies capable of making high-powered graphics processing units that power AI models.
With the market sentiment teetering on the edge of bullishness, investors are grappling with the question: What lies ahead for AMD’s stock in the future?
The bullish sentiment is contradicted by the technical analysis (TA), with AMD displaying 14 green days out of the last 30 and trading in the $93.11 – $111.31 range, which is quite broad, while at the time of press, it is trading in the middle of its recent price range.
However, with a 79.9% price increase over the last year and recent positive news regarding AI involvement, sentiment among investors seems optimistic for the next period.
Machine learning predictions
Adding to the polarity of the situation are the projections by machine learning algorithms from CoinCodex. These AI-driven forecasts anticipate a decline in AMD’s share price to $89.51 by November 2, 2024, with a -17.16% drop from the current levels.
However, these algorithms offer a surprising turn of events, with a projection of AMD’s stock rebounding to $278.37 by 2025, marking an increase of over 157.62% from today’s price.
Looking towards 2025
As we continue to predict the array of possibilities for 2025, it is essential to consider the factors deciding this forecasted AMD value increase: AI, competition with its decades-long rival NVIDIA, and the performance of its products.
While the next year doesn’t look too optimistic for this stock, things seem to be turning further down the line, with the increased involvement in the AI sector and industry reliance on the same, which might prove to be the needed bump for this microchip-producing company.
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Source: https://finbold.com/amd-price-prediction-2025/