On Tuesday, AMD stock experienced a notable surge, hitting a 52-week high of $158.74. Long-term investors who were already benefiting from a steady uptrend saw an 8% increase in a single day due to robust AI demand and upward revisions of price targets by prominent analysts. AMD’s previous all-time high was $164.46 in November 2021, and it is now approaching the possibility of surpassing that record.
Valuation rose 8% on Tuesday, closing at $158.74.
The surge was fueled by positive sentiments surrounding increased demand for advanced AI chips. Barclays, in an investor note, highlighted AMD’s potential to gain ground against Nvidia in 2024 as it expands chip deliveries to enterprise customers. This was supported by AMD’s recent introduction of new AI data center products, the Instinct MI300X AI accelerator, and the Instinct MI300A.
Barclays raised AMD’s target price significantly, moving it from $120 to a confident $200. Other major investment analysts, such as KeyBanc Capital Markets and Susquehanna Financial Group, also revised their target prices upward, indicating a positive outlook for AMD stock.
Nvidia, a dominant player in the AI space, also experienced a favorable Tuesday with its stock rising over 3% to a record high of $568.35 in intraday trading. While the average price target for Nvidia fell slightly to $625, the stock is still rated as a ‘buy.’ Both AMD and Nvidia are expected to continue their positive momentum, but caution is advised as stock prices are subject to fluctuations. Additionally, challenges in tapping into AI chip demand from Chinese organizations and uncertainties about the longevity of the AI trend remain potential hurdles for both companies.
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