Advanced Micro Devices, Inc (AMD) continues to be a favorite among Wall Street analysts. Wells Fargo has reiterated its stock price target for AMD to $700, with a 15.21% upside, while Bank of America has revised its outlook to $720, an 18.50% upside. Both institutions have also maintained their “buy” ratings for the the stock. Let’s discuss why Wall Street continues to be bullish on AMD and what the future holds for the company.
Why Is Wall Street Raising Its Stock Price Target For AMD?
Wall Street’s latest revision for AMD’s stock price comes on the heels of the company announcing the acquisition of World Labs in a $8.2 billion deal. World Labs is an expert in spatial intelligence, and the acquisition will likely further AMD’s AI ventures.
AMD has also delivered stellar results over the last year. Revenue and earnings per share have risen significantly, and Wall Street analysts anticipate the pattern to continue over the coming years. Many expect even higher revenue in the next quarter driven by AMD’s latest Helios chips.
Also Read: Kodiak Sciences (KOD) Why AMD fueled the stock 180% Higher
The bullishness around AMD’s stock performance also reflects in its recent rally to a new all-time high of $615.52 last week. The company’s market cap also breached the $1 trillion mark for the first time in its history. AMD has since faced a correction to the $607 mark, and may enter a sideways trajectory, given the overarching poor economic conditions. The Federal Reserve decided to raise interest rates earlier this month to combat rising inflation amid volatile oil prices. The US and Iran are yet to reach a deal, before which oil prices may continue to be unstable.
Nonetheless, the current trend of building data centers for AI may continue to feed AMD’s coffers. The company is expected to remain on its upward trajectory, at least for the time being.