Analysts reset AMD stock price target ahead of key | Global Market News

Analysts reset AMD stock price target ahead of key Analysts reset AMD stock price target ahead of key

Analysts reset AMD stock price target ahead of key | Global Market News




Advanced Micro Devices  (AMD)  stock is on the rise because the chipmaker good points momentum within the AI race, following months of lagging behind Nvidia  (NVDA) .It was reported earlier this week that AMD is considering of raising the price of its Instinct MI350 AI accelerator to $25,000 from $15,000, in line with Wccftech’s report citing HSBC’s analyst be aware.The practically 70% increase in MI350’s price may imply a notable growth in AMD’s future income. The price increase signifies that AMD is seeing demand for its AI merchandise, the report stated.AMD’s stock had tumbled in 2024 and earlier this 12 months on issues about trading uncertainties and its aggressive footing. Now, with news on the company’s superior chips, Wall Street is beginning to rethink AMD’s long-term potential within the booming AI space.In June, AMD’s CEO Lisa Su stated at a developer convention that the MI350 sequence is quicker than Nvidia’s. Meanwhile, the MI350 is cheaper than its counterpart product from Nvidia’s Blackwell B200, Wccftech reported.Su beforehand predicted $500 billion in AI accelerators market income by 2028, however she now sees it topping that quantity.“People used to think that $500 billion was very large number,” she stated. “Now it seems well within grasp.”Shares of AMD are up more than 14% over the previous 5 trading days.

AMD is set to report its second-quarter earnings on August 5.Image source: Cheng/AFP by way of Getty Images

What to count on from AMDThree months in the past, AMD reported stronger-than-expected first-quarter outcomes and gave a stable forecast for the second quarter, even because it confronted challenges from the broader economic system and export restrictions on AI chip gross sales to China.The company then posted adjusted earnings of 96 cents per share on $7.44 billion in income, each beating Wall Street’s expectations. Its knowledge center business generated $3.7 billion in gross sales, a 57% increase from a 12 months earlier and likewise ahead of analyst estimates.Related: Jim Cramer drops blunt 6-word message on Nvidia stock“While we face some headwinds from the dynamic macro and regulatory environments…we believe they are more than offset by the powerful tailwinds from our leadership product portfolio,” Su stated in May.AMD is set to report its second-quarter earnings on August 5. Wall Street expects earnings of 47 cents per share on income of $7.41 billion. Several analysts are more optimistic and consider the company could ship stronger outcomes than anticipated.Analysts raise AMD stock price targets ahead of earningsBank of America has raised its price target on AMD to $200 from $175, sustaining a Buy score ahead of the earnings report. The firm stated it expects AMD to beat expectations in each Q2 and Q3, pushed by sturdy demand for its AI GPUs and CPUs, in line with a analysis be aware revealed on July 29.BofA sees upside supported by stable demand for CPU and GPU, stronger pricing for AI chips, and a sturdy cloud capex setting, analyst Vivek Arya wrote.Related: Analysts flip heads with new Alphabet stock price target after earningsThe firm stated AMD is well-positioned to gain market share in each the PC and server CPU markets over the following two years. The firm additionally expects AMD to keep up a growing presence within the AI accelerator space, benefiting from its present product momentum and aggressive pricing in comparison with Nvidia.“Longer-term, we expect AMD to reach more than 30% of overall CPU market by CY26, up from just below 20% in CY23, as well as potentially 4-5% of AI GPU market,” Arya famous.There can also be extra upside if AMD receives regulatory approval to renew AI chip shipments to China, in line with the report. While not but confirmed, BofA sees that potential as a key issue for AMD’s GPU gross sales outlook.UBS additionally not too long ago raised its price target to $210 from $150 and maintained a buy score, citing power in each the PC and server segments, thefly.com reported on July 29. More Tech Stocks:

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  • The firm stated it expects upside in AMD’s second-quarter outcomes, with steering more likely to beat Wall Street expectations.AMD stock has climbed more than 46% year-to-date. Nvidia is up 30% over the identical period.Related: Legendary fund supervisor has blunt message on ‘Big Beautiful Bill’

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