“Keep an eye on oversold shares of Advanced Micro Devices (AMD),” we said on April 28.
“After catching support around $77, the stock is now back to $96.64. From here, we’d like to see it retest $110 initially. Helping, analysts at Susquehanna are out with a new price target of $135 with a positive rating on the oversold stock. Plus, Cathie Wood’s Ark Invest just picked up 24,800 shares of AMD for just over $2.14 million.”
At the time, AMD traded at around $95. It’s now up to $141.52 and could push even higher.
Helping, AMD Executive Vice President and Chief Commercial Officer, Philip Guido bought 8,800 shares of the stock for just under $1 million on May 20.
With AMD, we also have to remember the company is exposed to a multi-billion-dollar addressable market for data center AI chips. In fact, according to company Chair and CEO Lisa Su, that addressable market for AI chips will reach $500 billion by 2028, which is up from her prior estimate for $400 billion by the time 2027 rolls around.
“This is roughly equivalent to the annual sales for the entire semiconductor industry in 2023. Su is optimistic about the long-term market size potential for AI chips, and believes that AI demand has exceeded the company’s expectations over the past year,” as noted by Barron’s.
Also, the company’s latest generation of AI chips, the MI300, is its fastest ramping product ever. Lisa Su added that AMD’s MI300X chip—which rivals dominant AI chipmaker Nvidia’s H100 is “the most advanced AI accelerator in the industry,” as noted by Time.com.
Last trading at $141.52, we’d like to see AMD rally to $160 initially.
Sincerely,
Ian Cooper
Recent Comments