AMD’s Stock PT Raised: To Open At New 52Wk High as V-Shaped Recovery Complete

Advanced Micro Devices (NASDAQ: AMD) has staged a remarkable comeback, looking set to open at further 52-week high as bullish sentiment only seems to be growing by the day. Two big analyst calls have added fuel to an already bullish fire.

AMD's stock trades up 44% YTD leading into the open, with the rally from April's low now stretching to more than 120%. This confirms a sharp “V-shaped” recovery from low as the chart below makes clear.

In May, AMD announced a $6 billion share buyback plan, signaling confidence in its long-term growth prospects. The announcement resulted in a 6.30% increase in AMD's stock price at the time.

AMD has also made strategic investments in AI infrastructure, collaborating with LuminArx Capital Management to raise $333 million for AI cloud startup Vultr. This investment is aimed at expanding Vultr's GPU capacity, providing AMD with an opportunity to introduce customers to its GPUs through Vultr's platform.

Analyst upgrades have further fueled the stock's rally. Barclays raised its price target from $120 to $200, citing AMD's potential to gain ground in the AI chip market. KeyBanc Capital Markets adjusted its target from $170 to $195, and Susquehanna Financial Group increased its target from $130 to $170.

Yet this morning's call from BofA, raising their price target to $200 (from $175) on an expected increase to CPU share, with sale prices reflecting a clear premium on Intel, is even more bullish still.

UBS have also raised their price target to start the new week, putting in a mark of $210 (from $150) based on an upside expectation for Q2 results. PC and server segments are expected to come in strong, with UBS having guided above the street leading into earnings.