Key takeaways:
- AMD’s stock has surged 50% in 2023 to reach new highs above $180, driven by leadership in high-growth AI and computing markets.
- Wall Street analysts see further upside, with TipRanks setting a bullish $270 in a 12-month price target implying 40% gains.
- Our algorithm’s 2025 prediction is more conservative at around $294 per share, factoring in a potential slowing of AMD’s rapid growth trajectory.
Advanced Micro Devices (AMD) has been one of the top performing stocks so far in 2024, with its share price surging over 50% since the start of 2023. This meteoric rise has been fueled primarily by AMD’s growing presence and innovation in the artificial intelligence (AI) sector.
According to analysts and investors, AMD is poised to continue gaining market share and revenue from its high-performance computing products tailored for AI workloads.
AMD’s Impressive Market Performance
Over the past couple of months, AMD’s stock has reached record highs, peaking at $177 per share on Feb 5th. This represents an increase of more than 85% over the past year.
AMD’s exceptional market performance has been driven by its strategic investments and product developments in AI, machine learning, and other high-growth technology segments.
The company has leveraged its advanced CPU and GPU architectures to deliver powerful and efficient solutions ideal for cloud computing, gaming, supercomputing, and other AI applications.
In June 2023, AMD unveiled its next-generation roadmap, including the MI300A/X accelerators designed specifically for AI workloads. Combined with partnerships with AI leaders like Microsoft, Oracle, and OpenAI, AMD is positioning itself as a foremost provider of the chip technology powering the world’s most advanced AI systems.
In a 2022 press release, AMD’s CEO Dr. Lisa Su has stated that data center AI accelerators represent a $300 billion market opportunity by 2027. With AI as AMD’s largest strategic growth segment, the company is poised to capitalize on this massive, high-growth arena.
TipRanks Predicts $270 Price Target in Next 12 Months
Reflecting Wall Street’s bullish outlook on AMD, TipRanks have set an average price target of $270 over the next 12 months. This represents a potential 42% upside from AMD’s current share price of around $177.
TipRank predict a high target of $270 per AMD share, Image Source: TipRank
Our Algorithm Predicts a $294 Price by January 2025
While Wall Street analysts foresee additional gains for AMD in the near term, Our 2025 stock price prediction for AMD is more conservative.
Based on AMD’s average annual growth rate over the past decade, Our algorithm expects AMD’s stock to trade around $294.58 per share by January 2025. This would represent a roughly 65.81% decline from current levels.
Button Line: The Outlook for AMD’s Stock
With its growing presence in the lucrative AI market, AMD is attracting positive attention and optimism from analysts, evidenced by strong gains in recent months. However, the tech sector faces uncertainty, and AMD must continue executing on its product roadmap and capitalizing on emerging opportunities.
In addition, with large total addressable markets in AI and high-performance computing, AMD remains a compelling growth story in the eyes of many analysts.
Source: https://coincodex.com/article/37504/wall-street-forecasts-amd-stock-price-to-gain-40-in-the-next-12-months/