Shares of AMD (NASDAQ:AMD), a leader in the semiconductor industry, tumbled despite being given a boost of confidence from Northland, as the investment firm upgraded the chip giant’s status on the back of potential gains in artificial intelligence (AI). Northland’s analyst, Gus Richard, elevated AMD’s rating to Buy and set a price target of $150 per share. He acknowledged that while Nvidia (NVDA) has historically dominated the GPU space, AMD’s forthcoming MI 300 and El Capitan supercomputer are expected to enhance its GPU revenue in the latter half of the year.
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However, despite robust May sales data showing a larger-than-expected increase in the semiconductor industry, investment firm Citi maintains a conservative outlook. Citi analyst Christopher Danely highlighted that May’s monthly sales were up 5.7%, surpassing seasonal trends and Citi’s own estimate of $38.4B. However, he warned of a potential 15% dip in chip sales year-over-year in 2023, largely due to a weaker auto market. Although cautioning on the sector, Danely noted companies such as Micron (MU), ON Semiconductor (ON), GlobalFoundries (GFS), and AMD for offering the most potential for increased margins and earnings per share within the industry.
What is AMD’s Target Price?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMD stock based on 21 Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. In addition, the average price target of $134.31 per share implies 16.57% upside potential.
