Keep an eye on Advanced Micro Devices (AMD).
After slipping to $140, it’s now up to $150.60. From here, we’d like to see it initially refill its bearish gap at around $160 a share.
Helping, JPMorgan just noted, “We believe that near-term the team is supply constrained, but given 2H supplier commitments and expanding supply, they are NOT capped at their $4B annual target,” Sur wrote in an investor note. “We believe the team can grow datacenter GPU revenue to $5B+ in CY24 and continue to take share from Intel in server and PC CPUs (we estimate 100 [basis points] of share gain in 1Q and 2Q server CPU share).”
The firm also raised its 2024 estimates on strong AI demand, with a $180 price target.
KeyBanc may have lowered its price target to $230 from $270. However, it did maintain an overweight rating, and sees AMD on track to capitalize on the growing demand for graphics processing units (GPUs) with the AI boom.