Semiconductor giant Advanced Micro Devices’ (NASDAQ:AMD) stock crossed $300 billion in market cap on Thursday, February 29. The company’s stock closed 9.1% higher yesterday and reached a new 52-week high of $193.
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The recent uptrend comes after Citigroup (C) expressed optimism for semiconductor stocks, particularly due to the expanding artificial intelligence (AI) market. This bullishness stems from the increasing demand for AI chips due to the generative AI wave. It is worth mentioning that AMD is considered the second-best player in the AI market, closely behind NVIDIA (NVDA).
Looking ahead, AMD is expected to continue benefiting from the robust demand for its chips, which are essential in powering AI computing. Remarkably, the December launch of AMD’s MI300A APUs and MI300X GPUs designed for AI applications boosted Data Center revenues by 38%. Thus, the strong momentum in accelerated computing and generative AI keeps AMD well poised for growth in the long term.
Is AMD a Buy, Hold, or Sell?
Overall, AMD stock has a Strong Buy consensus rating based on 29 Buys and five Holds. Shares of the company have gained about 31% year-to-date and are up nearly 146% in the past year. Following this significant growth, analysts’ average price target of $196.65 implies a modest upside of 2.14% from current levels.
