On June 13, we noted, “Consolidating at $159, Advanced Micro Devices (SYM: AMD) could break significantly higher. For one, the artificial intelligence story is still heating up. Two, demand for AMD chips is only expected to gain momentum. Three, analysts at Edward Jones just initiated a buy rating on AMD.”
At the time, AMD traded at $159.90. Today, it’s up to $186.10 and rocketing higher. All after Piper Sandler named the tech stock a “top pick” for the second half of 2024.
Helping, analysts at Roth MKM and Wells Fargo raised their AMD price targets to $200 and $205, respectively. All after AMD said it would acquire AI lab, Silo AI.
As noted by Seeking Alpha:
Wells Fargo was positive on the Silo AI deal and said the acquisition is a “positive tactical / strategic move focused on deepening AMD’s internal open-source AI software expertise.” Additionally, it does not seem like Silo AI worked a lot with Nvidia’s GPUs and AMD is likely to “emphasize this acquisition as focused on open source ecosystem capabilities.”
