What's Going On With AMD Stock Tuesday?

Zinger Key Points
  • AMD unveils AI-enabled Ryzen PRO series, analysts rally with upgrades and high targets.
  • AMD's launch of AI desktop processors sets stage for market lead, gains analyst confidence.

Today, Advanced Micro Devices, Inc AMD announced the new AMD Ryzen PRO 8040 Series with x86 processors built for business laptops and mobile workstations, and the AMD Ryzen PRO 8000 Series desktop processor, the first AI-enabled desktop processor for business users constructed with the advanced 4-nanometer technology

AMD stock price soared after the launch.

Gartner expects AI PC shipments to account for 22% of all PCs in 2024, with 54.5 million units of AI PCs to be shipped by the end of the year, CNBC reports.

Also Read: Microsoft Set to Unveil Qualcomm-Powered AI PCs, Aiming to Surpass Apple’s MacBook Air

Two analysts re-rated the stock today. HSBC analyst Frank Lee upgraded AMD from Hold to Buy with a $225 price target.

Evercore ISI Group analyst Mark Lipacis initiated coverage on AMD with an Outperform rating and a price target of $200.

The analyst noted AMD as a beneficiary of the Tectonic Shift in Computing to the Parallel Processing Era as it captures a greater share of server CPUs and share in the merchant accelerator market with its Mi300 series products. 

He noted AMD is establishing itself as a solid second source to Nvidia Corp NVDA in merchant accelerators, and that position could accelerate with progress on its chip+hardware+software ecosystem. 

The analyst adds that the bulk of XLNX revenue synergies remain on the come ($10 billion+) offering further upside over the longer-term.

Multiple analysts expressed their confidence in Advanced Micro Devices, Inc AMD as earnings season kicks in, maintaining the stock as their top pick.

Citi analyst Christopher Danely remained bullish on semiconductors and reiterated AMD as one of his top artificial intelligence picks.

The analyst expects results and guidance to be more muted during the first quarter of fiscal 2024 earnings season. 

He expected AMD to raise its AI forecast in the summer with analog prints and guidance roughly in line with positive commentary on second-half fiscal 2024 bookings. 

Piper Sandler analyst Harsh V. Kumar noted that Nvidia and AMD products have an edge in terms of their potential to capitalize on the AI accelerator market despite Intel Corp’s INTC announcement of its Gaudi 3 accelerator.

Mizuho analyst Vijay Rakesh noted AMD has seen strong demand sold out of MI300X with design wins potentially at hyperscalers Meta Platforms Inc META, among others, and non-CSP potentially the U.S. government. 

From his call with an industry expert on the data center and AI supply chain, the analyst noted AMD MI300 sold out for 2024 with further ramps and share gains limited by supply at Taiwan Semiconductor Manufacturing Co TSM

He said AMD is pricing MI300X at a ~10-15% discount to Nvidia. Despite some concerns over MI300 ramp issues, software challenges, and Infiniband access, his call noted minimal risk given system planning, allocation complexity, and desire for a secondary supplier. 

AMD stock gained over 78% in the last 12 months. Investors can gain exposure to the stock via AOT Growth And Innovation ETF AOTG and Invesco PHLX Semiconductor ETF SOXQ.

Price Actions: AMD shares traded higher by 2.44% at $164.23 on the last check Tuesday.

Also Read: Intel Sets Sights on Dominating AI PC Market with Ambitious 100M Target, Partners with Microsoft

Image Credits – Shutterstock

Market News and Data brought to you by Benzinga APIs
Price Target
Posted In: NewsPrice TargetInitiationReiterationAnalyst RatingsMoversTechTrading IdeasBriefsBZ Data ProjectExpert IdeasStock BattlesStories That Matterwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!