As Advanced Micro Devices, Inc. (NASDAQ: AMD) stock rose more than 14% over the past two weeks fueled by a record-breaking second-quarter earnings report, Stacy Rasgon, an analyst at Bernstein, expects a rally towards a new all-time high (ATH) over the next 12-months.
Rasgon reiterated a ‘Buy’ rating for Advanced Micro Devices stock, according to a note sent to clients on August 13. He further raised the firm’s 12-month price target for AMD to $650 from $525, representing a 23.8% uplift.
With AMD stock trading at approximately $492.50 on Thursday, Rasgon suggests a potential 32% upside. The analyst’s bullish forecast for Advanced Micro Devices stock was driven by strong Q3 guidance of $13.0 billion, which exceeded consensus expectations.
Furthermore, this valuation is supported by projected data center segment revenue of around $8.1 billion in Q3. Additionally, Advanced Micro Devices is expected to record higher revenue due to continued server CPU market share gains over Intel Corp. (NASDAQ: INTC), and anticipated long-term Earnings Per share (EPS exceeding $14 by 2027.
Advanced Micro Devices stock forecast
In addition to Rasgon, Vivek Arya, a researcher at Bank of America Corp. (NYSE: BAC), reiterated a ‘Buy’ rating for AMD. As such, 33 analysts surveyed by TipRanks have set an average price target for AMD at $647.04, which represents a 31.70% upside.
Worth noting that the highest 12-month price forecast is $1,250, while the lowest is $465 at the time of reporting.
AMD share price performance
Over the past 30 days, AMD’s price has fallen by 6.92%, thereby reducing its market capitalization to roughly $788.4 billion at the time of publication.
If AMD’s price continues to ride the bullish sentiment in the broader semiconductor stocks, the analysts’ target could be met.
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