While Nvidia (NASDAQ: NVDA) has, without a doubt, earned the attention it has been getting in 2024 with its semiconductor technology, pivotal role in the artificial intelligence (AI) boom, and stellar stock market performance, the other major blue-chip chipmaker – Advanced Micro Devices (NASDAQ: AMD) – should not be disregarded.
Though AMD has so far failed to match the growth of its biggest competitor, the stock has generally outperformed the benchmark S&P 500 stock market index and is 17.19% in the green year-to-date (YTD).
Additionally, judging by the price target set for AMD shares- and the most recent rating revisions – it is evident that experts believe the best is yet to come for the semiconductor giant.
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Analysts revise AMD 12-month price targets
The first 10 days of June have featured a string of price target revisions for AMD with the first major ones taking place on the third and fourth day of the month.
On June 3, CFRA analysts reaffirmed that they consider Advanced Micro Devices to be a ‘buy’ and assigned the company a price target of $200 – 23.16% above AMD price today of $162.39.
One day later, Bank of America (NYSE: BAC) also offered a bullish outlook for the chipmaker and forecast that its stock will climb to $195 in the coming 12 months. Previously, BAC’s price target for AMD stood at $185. The same day, TD Cowen assigned the semiconductor company a ‘buy’ rating accompanied by a $200 price target stating the firm is successfully matching Nvidia’s roadmap.
Citi (NYSE: C), while offering a positive outlook, proved more conservative as it forecast AMD will climb to $176 in the coming 52 weeks of trading.
More recently, on June 10, analysts at Susquehanna offered another $200 12-month target for AMD, while Morgan Stanley (NYSE: MS) followed Citi and reiterated both a ‘buy’ rating and a $176 forecast.
The banking giant’s rating was accompanied by a warning that investors’ hopes and expectations of the AI boom remain too high:
We like the AMD story, but investor expectations for the AI business still seem too high to us. We continue to see AMD as increasingly well positioned in their core markets, but persistently high AI expectations make us more cautious on their ability to justify a premium multiple.
Analyst consensus remains bullish for AMD stock
Along with the most recent revisions, AMD continues to boast a generally optimistic outlook and is overall rated as a ‘strong buy’ on the stock analysis platform TipRanks.
Out of the 35 represented analysts, 28 consider Advanced Micro Devices stock to be ‘buy” and 7 are ‘neutral’ on the technology firm.
Finally, the average price target would see AMD climb 17.64% in the coming 12 months to $191.03. The biggest bulls consider $235 a plausible outcome of the upcoming 52 weeks of trading, while the largest bears believe the semiconductor company might fall to $140.
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