Largely thanks to their pivotal role in the artificial intelligence (AI) boom, semiconductor companies have been some of the best performers in the stock market in 2024.
Though it had not matched the success of its biggest competitor and the dominant blue-chip chipmaker – Nvidia (NASDAQ: NVDA) – Advanced Micro Devices (NASDAQ: AMD) has not been an exception to the trend and is up 32.30% since January 2.
Additionally, the company has been performing particularly well in the last 30 days, having risen more than 15% in the time frame, and is set to receive another boost with its announced acquisition of Silo AI. This year’s growth already ensured that AMD price today, at press time, stands at $183.34.
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Analysts adjust AMD ratings and price targets
Perhaps unsurprisingly, given that AMD stock continues to be strong despite underperforming some of the biggest names in its industry, Wall Street experts are generally highly bullish about the semiconductor company.
Out of the seven AMD stock price target revisions in July 2024, all but two have seen the predicted upside increase. Indeed, even KeyBanc, responsible for the only reduction – $230 to $220 – not only kept a high prediction but also maintained the ‘buy’ rating.
The other firm that failed to raise its price target – Stifel Nicolaus – nonetheless reacted fairly positively to the Silo AI acquisition and maintained the $200 forecast and the ‘buy’ rating.
Most analysts forsee bigger upside for AMD stock
Elsewhere, the banking giant Wells Fargo (NYSE: WFC) decided an upgrade was in order on July 10 and raised the price target from $195 to $205 while maintaining a ‘buy’ rating.
DBS Bank also proved bullish one day later as it, having analyzed factors like price-to-book value ratio (P/BV), increased the target price from $187.4 to $227.2.
In its revision from $180 to a $200 price target, Roth MKM emphasized the likely benefits of the recently announced acquisition, and TD Cowen justified its target of $210 with strong growth prospects for AMD stock.
Finally, Oppenheimer reiterated its ‘hold’ rating and warned that the upside will be limited in the foreseeable future, with the firm’s Rick Schafer pointing out that the data center and client growth appears offset by the weakness in the gaming and embedded business.
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