Advanced Micro Devices Inc (NASDAQ: AMD) is already up about 20% for the year but a Raymond James analyst is convinced that’s just a drop in the bucket compared to where the stock is headed.
On Thursday, Srini Pajjuri recommended buying AMD stock and announced a $100 price target that signals a potential 30% run to the upside.
The bullish call is primarily based on the company’s leadership in artificial intelligence and machine learning.
Advanced Micro Devices is an underappreciated play on artificial intelligence and machine learning. Near-term investors focus is on server share gains, which should continue through the year.
About a month ago, the semiconductor behemoth reported better-than-expected results for its fiscal fourth quarter despite a slowdown in PC sales.
Srini Pajjuri also expects Advanced Micro Devices to benefit from continued adoption of electric vehicles. The Raymond James analyst is confident that the multinational will do great as inflation comes down further in the coming months. His research note also says:
While valuation looks a bit stretched, we expect upward estimate revisions to start in 2H23 as inventories normalise, setting the stage for continued outperformance.
Last month, though, the U.S. Bureau of Labour Statistics said consumer prices were up more than expected in January. AMD stock is still down 50% versus its record level in late 2021.
Another prominent semiconductor stock Pajjuri dubs a strong buy to play the artificial intelligence and machine learning space is Nvidia Corporation (NASDAQ: NVDA).
The post AMD stock price forecast: Raymond James sees a 30% upside appeared first on Invezz.