Shares of Advanced Micro Devices (NASDAQ:AMD) have risen significantly year-to-date (see the image below). However, analysts from Wolfe Research and Wells Fargo believe that the rally in AMD stock is not over yet, implying further upside in the stock.
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It’s worth highlighting that AMD is among the top beneficiaries in the semiconductor space, apart from Nvidia (NASDAQ:NVDA), to gain from the surge in demand for chips that drive AI (Artificial Intelligence) applications. AMD stock recovered significantly thanks to solid demand and its recently launched MI300X GPU (Graphics Processing Unit) for AI.
AMD Stock Could Rise Further, According to Analysts
While AMD stock has appreciated quite a lot, Wolfe Research analyst Chris Caso initiated coverage on AMD with a Buy rating on July 19. Further, the analyst added AMD to its Alpha List. Caso assigned a price target of $150 on AMD stock, implying 28.83% upside potential from current levels.
Caso expects the normalization of inventory issues to support AMD’s growth in the second half of 2023. Further, the analyst expects AMD to continue to gain market share and benefit from the AI boom led by its MI300X GPU.
Earlier on July 18, Wells Fargo analyst Aaron Rakers reiterated a Buy recommendation on AMD stock with a price target of $150. The analyst sees upside potential from the MI300X GPU ramp-up.
What is the Future of AMD Stock?
The top Wall Street analysts maintain a favorable outlook on AMD stock. Before we dig deeper, it’s important to mention that TipRanks identifies the Top Wall Street analysts per sector, per timeframe, and against different benchmarks. The ranking shows an analyst’s ability to deliver higher returns through recommendations. Following the ratings, TipRanks’ algorithms calculate the statistical significance of each rating, the analysts’ overall success rate, and the average return.
Returning to AMD, the stock has 20 Buy and six hold recommendations from top analysts. Further, these analysts’ average price target of $137.19 implies 17.83% upside potential from current levels.
Investors should note that Gus Richard of Northland Securities is the most accurate analyst for AMD stock, according to TipRanks. Richard upgraded AMD stock to a Buy on July 5. Copying Richard’s trades on AMD stock and holding each position for one year could result in 91% of your transactions generating a profit, with an average return of 89.31% per trade.
