After exploding higher, Advanced Micro Devices (AMD) is still red hot.
Analysts at Barclays just raised their AMD price target to $200 from $120, noting AMD could see $4 billion in AI chip sales this year. The firm also cited strong demand for AMD’s MI300 chip for servers. KeyBanc analysts also increased their price target for AMD to $195 thanks to strong demand.
Over the last few days, AMD was upgraded to a buy rating at Melius Research, which has a $188 price target on AMD. “AMD could have huge ramps for AI equipment later in 2024 and especially in 2025 – and we see meaningful upside to consensus,” Melius analysts wrote.
And, as quoted by Investing.com, the firm added, “Generative AI is poised to deliver its ‘Halo Effect’ on IT spending, starting in 2024. If 2023 was the year of getting ready or ‘training’ large language models, then 2024 should be the year where production or ‘inferencing’ starts to kick in (more assistants and voice prompts help).”
