Consolidating at $159, Advanced Micro Devices (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. In fact, according to AMD’s CEO, the company expects to see about $4 billion in AI chip sales, an increase of $500 million from prior estimates. Three, analysts at Edward Jones just initiated a buy rating on AMD.
Even better, according to analysts at Citi, AMD could take 10% of the data center GPU market after updating its AI GPU roadmap to better compete with Nvidia.
“We believe AMD is using an annual product cadence to keep pace with Nvidia, and we still expect AMD to get 10% share of the data center GPU market or roughly $15.0 billion,” Citi added, as noted by Seeking Alpha. The firm also reiterated its Buy rating and $176 price target.