Leading technology stocks have been riding high in recent months following the bullish momentum in the artificial intelligence (AI) market.
In this line, semiconductor firm Advanced Micro Devices (NASDAQ: AMD) is among the beneficiaries, with analysts projecting that the equity has more potential upside.
Notably, in 2024, AMD has rallied 28%, trading at $178 by the close of markets on July 8. Following the stock’s gains, investors are looking for the next significant resistance level of $200.
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Indeed, if AMD reclaims this level, it will be in sight of trading at the yearly high of $211 observed in early March.
An analysis shared by Peter DiCarlo in an X post on July 7 indicated that AMD has the potential to make significant gains in the coming months.
The analysis highlighted that AMD is currently breaking out of a triangular pattern with significant strength to the upside. The chart movement indicates a bullish trend that could propel the stock toward new highs. AMD is primed to make a run for all-time highs by the end of summer, with $200 as the target.
“AMD primed to make a run for all time highs by end of summer. $200. Triangle is breaking with strength to the upside,” he said.
Significance of the $175 mark
DiCarlo emphasized the importance of the stock’s movement past the $175 mark, noting that minimal trading volume above this level could facilitate a swift ascent. If AMD closes another weekly candle over this pivot, a higher move into September is expected.
However, this optimistic outlook hinges on AMD’s upcoming earnings report, scheduled for the last week of July. The consensus EPS forecast stands at $0.67. Strong earnings results could further bolster investor confidence and drive the stock higher, while any disappointments could impede its progress.
Besides the analysis shared by DiCarlo, Wall Street analysts also project a bullish upside for the equity in the coming 12 months. According to data from TipRanks, 35 Wall Street analysts opined that Advanced Micro Devices is expected to see modest gains, with the average price target set at $191, reflecting a 6.91% increase from AMD’s last closing price.
The analysts ‘ forecasts for AMD’s stock price vary significantly, with the highest target at $235 and the lowest at $140. The overall rating for the stock is a ”strong buy”.
Notably, considering AMD’s growth has been largely centered on its AI advancements, how the company keeps up with competitors like Nvidia (NASDAQ: NVDA) will be critical. Already, the firm is attempting to keep pace, having unveiled competing chips that attract customers like Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META).
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
