Shares of chip giant Advanced Micro Devices (NASDAQ:AMD) are up over 78% in a year, outperforming the S&P 500’s (SPX) nearly 23% gain. Despite this notable growth, analysts’ average price target on AMD stock suggests more room for growth.
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Analysts’ Bullish Stance on AMD
Notably, Evercore ISI, a global independent investment banking advisory firm, initiated coverage of AMD on April 15 with a Buy rating and price target of $200, implying a 24.75% upside potential from current levels. The analyst expects AMD to benefit from the strong demand for its MI300 accelerator, designed for artificial Intelligence (AI) and high-performance computing. Moreover, the analyst suggests that AMD stands to benefit from its increasing market share in server CPUs.
Also, HSBC and Bank of America Securities analysts are bullish about AMD’s prospects. HSBC analyst Frank Lee upgraded AMD stock to Buy on April 15. Lee’s price target of $225 implies 40.34% upside potential.
Meanwhile, five-star analyst Vivek Arya of Bank of America Securities reiterated a Buy on AMD stock. Arya’s price target of $195 suggests 21.63% upside potential.
The Most Accurate Analyst Covering AMD Stock
Piper Sandler analyst Harsh Kumar is the most accurate analyst covering the stock in a one-year timeframe, according to TipRanks. Copying Kumar’s trades on AMD stock and holding each position for one year could result in 90% of your transactions generating a profit, with an average return of 36.46% per trade.
What Is AMD’s Stock Prediction?
Analysts are bullish about AMD’s prospects. The company launched the MI300 accelerator family in December 2023 to compete with Nvidia (NASDAQ:NVDA) and is witnessing solid enterprise demand. It is aggressively ramping up production to meet growing demand, which will likely support its financials and share price.
It’s worth noting that AMD’s CEO, Lisa Su, sees significant AI-led growth opportunities. Moreover, the expected recovery in the traditional server CPU market and its growing market share augur well for growth.
AMD stock has a Strong Buy consensus rating based on 28 Buy and six Hold recommendations. Analysts’ average AMD stock price target of 201.26 implies 25.54% upside potential.
