AMD stock may reach $190 due to AI chip demand and market growth, with buy rating.

From Nasdaq: 2024-05-14 05:45:00

Advanced Micro Devices (NASDAQ: AMD) reported first-quarter results in line with expectations, with data center and PC revenue growing due to AI and market recovery. However, gaming and embedded revenue declined, offsetting gains.

Jefferies analyst projects AMD will benefit from semiconductor market upcycle and AI chip demand. Coverage initiated with buy rating and $190 price target, representing 25% upside.

AMD catching up to Nvidia in AI chip demand with MI300 GPUs surpassing $1 billion revenue. Strong position in data center CPU market with EPYC CPUs outperforming Intel. Despite growth potential, gaming struggles and high stock price at over 40 times forward earnings raise doubts about $190 target.

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Read more at Nasdaq: Is AMD Stock Going to $190? 1 Wall Street Analyst Thinks So.