AMD’s stock rose over 2% Thursday and climbed above $170, as investors were enthused by a wave good news.
The surge in AMD shares was caused by several factors, including new analyst upgrades and strong growth of the artificial intelligence chips business. Wall Street is also paying attention to AMD’s strategic partnership.
Investors are catching on to the fact that AMD has become a serious competitor with Nvidia, Intel and other top-tier companies.
AMD is making a significant impact in next generation computing. This is especially true in data centers and AI, where the real action takes place.
Why is AMD’s stock price surging?
AMD’s recent stock rise is largely due to a handful of key victories that demonstrate the company has made significant progress on the lucrative AI chip market.
It’s the growing hype around AMD MI350 Instinct GPUs. The MI350 Instinct GPU series is being marketed as an alternative to Nvidia H100’s expensive chips.
The MI355X has attracted the attention of big cloud providers as well as enterprise clients looking to upgrade their artificial intelligence systems.
Performance for price is a great combination that cost-conscious consumers can’t ignore. The momentum of AMD’s ROCm platform is perhaps even more important.
The open-source alternative of Nvidia’s CUDA is gaining real traction among developers. This will be critical in the long run.
It appears that AMD has finally made real progress in this area.
As if this wasn’t good enough, AMD recently announced a partnership with IBM. This gave AMD stock a further boost.
Both companies have teamed up to develop quantum supercomputing. They are combining AMD’s high performance CPUs and IBM’s quantum systems in order to build what could potentially be a game-changing platform.
What should you purchase?
Wall Street has started to take notice of AMD’s growth, as several major firms have upgraded their views on the stock.
Truist Securities made the biggest move, upgrading AMD to “Buy”, and raising its target price from $173 to $213.
Its optimism is based on the fact that AI chips are being adopted faster than expected by companies and cloud service providers.
HSBC also maintained its “Buy’ rating, with a price target of $200.
It’s fascinating that they focus their attention on AMD’s competitiveness in terms of price and innovation. They highlight how AMD chips, like the MI355X, are around 30% less expensive than similar Nvidia products but still offer comparable performance.
The stock chart is promising from a technical standpoint. AMD’s stock is hovering at a $175 key resistance level.
Analysts have set a target of $200-$215 for the stock if it is able to break through that barrier.
The post AMD Stock rallies over $170: Should you Buy? This post may be updated as new information unfolds
