Chip stock AMD (NASDAQ:AMD) had a little better run of things than its competitor Intel (NASDAQ:INTC) did in Wednesday morning’s trading. Where Intel’s expected chip line left analysts lukewarm, AMD’s had them fired up. The upcoming MI300 launch is spurring interest all over, though perhaps more so from analysts than from investors.
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Word from Wells Fargo, via analyst Aaron Rakers, suggests that the MI300’s launch is “increasing confidence” in AMD’s ability to succeed in 2024 and in the fourth quarter of this year. This is thanks to rising spending on artificial intelligence, which should benefit AMD. Growth in the data center is also giving AMD a little extra help, as the total market for data center AI should hit somewhere around $150 billion in the next three to four years.
Yet, even as Wells Fargo sang AMD’s praises, AMD also offered up some points that are laying the groundwork for the next few years. For instance, AMD director for commercial clients Justin Galton noted that commercially-available AI for the desktop is not only not a thing yet, but likely won’t be a thing for the next several years. Though AMD is offering processors that can enable AI, they may be getting all dressed up with nowhere to go. Yet, AMD is also rolling out potent new hardware like the “Siena” CPU, packing up to 64 Zen 4c cores. That’s going to be some serious help for the edge server process, and should find plenty of welcome accordingly.
Is AMD a Buy, Sell, or, Hold?
AMD has pulled quite a bit of analyst support with it. AMD stock is currently considered a Strong Buy by analyst consensus, supported by 22 Buy ratings and seven Holds. Further, AMD stock comes with a healthy 37.02% upside potential thanks to its average price target of $140.25.
