Raymond James analyst Simon Leopold has raised Advanced Micro Devices, Inc (AMD) stock price from $565 to $641. The increased stock price target represents a near 33% upside from current levels. Leopold has a success rate of 60%, which gives substantial weight to his prediction. The analyst also anticipates AMD to overtake Intel by 2027. Leopold stated, “AMD’s growth should enable it to overtake Intel during 2027.“
How Soon Can AMD Hit Its Stock Price Target?
Wall Street analysts have become increasingly bullish on AMD’s future. The optimistic outlook is no surprise. The ongoing AI boom has led to a massive surge in chip manufacturer valuations. AMD’s stock has seen some of its biggest rallies in the last year. The company’s revenue has also hit record numbers. According to Leopold, “AMD offers the strongest combination of direct earnings leverage, datacenter positioning, and market-share gains.“
Bernstein recently raised its stock price target for AMD from $525 to $650. DBS raised their target from $500 to $570. Morgan Stanley raised their target from $410 to $465, which has a downside of about 3.3% from current price levels.
Leopold’s statements about AMD potentially overtaking Intel are also supported by the latter’s declining x86 market share. A recent report by Mercury Research shows that AMD’s market share for x86 CPUs has crossed the 30% mark, with Intel’s share dropping to 69.7%. This marks the lowest figure for Intel since 1995, more than 30 years ago.
Also Read: AMD Stock Best Case Scenario Vs. Worst Case Scenario
If AMD continues to outperform Intel, its stock price could breach the $600 mark by 2027. AMD’s Helios chips are also expected to make a dent in the industry. Many anticipate the Helios racks to reflect higher revenue by the fourth quarter of this year. The Helios numbers could further propel AMD’s stock price north of $600.