AMD shares are experiencing an upward trend today.
**AMD Poised for AI Market Growth: Analyst Boosts Price Target**
Advanced Micro Devices (AMD) is gearing up for a significant presence in the artificial intelligence (AI) market, according to analysts at Melius Research. The tech company's anticipated launch of the MI400 processor next year is expected to be a game-changer, particularly in less demanding AI inference applications.
Melius has increased its one-year price target on AMD stock from $110 per share to $175 per share, and upgraded its rating from hold to buy. This optimistic outlook stems from AMD's improved position in the AI sector, as highlighted at the Advancing AI conference hosted by AMD earlier this month.
The MI400 chip could further enhance AMD's competitive positioning, especially in areas where NVIDIA's dominance is less pronounced. However, AMD faces challenges from NVIDIA's robust CUDA ecosystem and Intel's renewed focus on innovation in the discrete GPU market. Additionally, U.S. export controls on advanced AI chips sold to China could potentially limit AMD's ability to capitalize on China's rapidly growing AI market.
Despite these challenges, investors are expected to get more excited about AMD's GPU sales outlook from 2026 through 2028. The recently launched MI350 processor appears to be off to a strong start, and AMD's share price has increased by 22% over the last three months. This positive momentum is due in part to bullish analyst coverage, with Melius publishing new coverage on AMD stock before the market opened today.
As of 3:15 p.m. ET, AMD's share price was up 1.1%. The S&P 500 and the Nasdaq Composite were both up 0.7% at the same point in the day's trading. AMD stock has moved higher in Monday's trading, reflecting the growing confidence in the company's AI strategy. Investors are looking forward to seeing how AMD's MI400 processor will perform in the market and how it will contribute to the company's overall growth in the AI sector.
- Investors are notably interested in the finance industry, specifically the stock-market, as Advanced Micro Devices (AMD) prepares to launch the MI400 processor, anticipated to be a game-changer in AI inference applications.
- Melius Research recently boosted its price target on AMD stock from $110 per share to $175 per share, due to AMD's promising position in the AI sector.
- As the AI market grows, AMD's investing strategy is under the spotlight, with the company looking to strengthen its competitive stance, particularly where NVIDIA's dominance is not prominent.
- The technology sector eagerly awaits the performance of AMD's MI400 processor in the market, with analytics suggesting a potential positive impact on AMD's overall growth in the AI sector.
