Advanced Micro Devices, Inc (AMD) is riding the ongoing AI wave, delivering some of its strongest quarters ever. AMD stock prices have also registered incredible growth, with Wall Street analysts become increasingly bullish on the asset’s future. Let’s look at AMD stock’s best and worst case scenario.
AMD Stock: Best And Worst Case Scenario
The most bullish outlook for AMD comes from Baird analyst Tristan Gerra. Gerra doubled AMD’s price target from $625 to $1,250. The analyst cites AMD’s strong long-term outlook for its AI platforms. Gerra predicts AI GPU revenue to hit $147 billion by 2030. The analyst also highlights AMD’s Helios rack-scale AI infrastructure ramp to play a vital role in the company’s revenue growth. Many experts have stated that AMD’s Helios chips could reflect in the company’s Q4 earnings report.
While the bullish projections for AMD are plenty, there are some bearish predictions as well. Wall Street’s lowest outlook for AMD comes from none other than Morgan Stanley. The prominent financial institution anticipates AMD’s stock price to hit $465, a near 3% downside from current price levels. Morgan Stanley presents a more conservative outlook for the chip manufacturer, as opposed to Baird.
Also Read: AMD CPU Market Hits 30% As Intel Falters: Will Stock Price Rise?
AMD’s growth depends significantly on the company’s AI bet. While gaming GPUs and consumer PC CPUs were a big part of AMD’s arsenal, things have changed over the last few years. AI revenue currently represents a majority of the company’s earnings. There are some risks of a potential AI bubble, which many analysts such as Michael Burry have pointed out to. In the event of an AI bubble burst, AMD stock prices could take a massive hit, given that its gaming business just does not have the numbers to keep protect investors. Nonetheless, analysts are optimistic about the future of AI and the companies that are fueling the AI boom.