Advanced Micro Devices (AMD) stock soared 9.89% on Monday, despite a new bug related to the chip company’s graphics processing units (GPUs). According to recent reports, AMD’s External Events Utility (EEU) is causing problems with SSDs in systems with Radeon GPUs installed.
These reports claim that the EEU is keeping the SSD active when it shouldn’t be. One user claimed that this caused his SSD’s health to deteriorate by 1% every month over a period of 16 months. This can shorten the lifespan of the SSD, forcing users to pay for replacements sooner than expected.
AMD is aware of the issue. It has respond to users with this complaint both on its own forums and on Reddit (RDDT). The company said that it is working on a fix for this issue that should show up in a future driver update. For now, users can disable EEU to avoid the issue, though that isn’t an ideal option.
What Has AMD Stock Up Today?
There are two major reasons for AMD stock to be up today. The first is that the semiconductor company has signed a massive deal with Alphabet’s (GOOGL) Google Cloud. The company announced that its fifth-generation EPYC server systems will power Google Cloud’s TPU 8tx systems.
In addition to that news, AMD received praise from a top-rated analyst. Oppenheimer analyst Rick Schafer upgraded AMD stock to a Buy rating from Hold and set a $600 price target for the shares, suggesting a possible 19.51% upside. He called the company’s server and data center success “undeniable” in a note to clients. The analyst also expects AMD to negotiate better deals in this sector as an incumbent player.
Schafer is a five-star analyst on TipRanks and is ranked 20 out of 12,559 Wall Street analysts on the platform. He is also ranked 68 out of 37,108 experts on the website. He has a Success Rate of 70%, with 348 out of 500 ratings making a profit and an Average Return of 28.9% per rating.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Strong Buy, based on 28 Buy and four Hold ratings over the past three months. With that comes an average AMD stock price target of $650.39, implying a possible 29.67% upside for the shares. (See AMD Stock Forecast)
