From Nasdaq: 2024-05-06 18:00:00

– Semiconductor chipmaker AMD has seen its stock price soar due to increased demand for AI-tailored chips. However, the stock dropped after its Q1 earnings report. With revenues exceeding expectations, AMD’s long-term growth potential remains strong, especially in its data center and PC divisions.

– Despite a slight increase in Q1 revenue, AMD’s overall growth was hindered by declines in its video games and industrial sectors due to cyclical market trends. However, the company’s AI-enabled chips in data centers and PCs continue to drive sales. CEO Lisa Su remains optimistic about sustained growth fueled by AI demand.

– Wall Street analysts believe AMD’s stock has long-term upside potential, with a target price of $195 per share. The company’s focus on AI chip development aligns with the expected growth in the AI industry. Investors should consider the opportunity to buy AMD shares at a lower price point post-earnings to benefit from future growth.



Read more at Nasdaq: Is AMD Stock a Buy?