Advanced Micro Devices (AMD) stock was down on Tuesday despite bullish analyst coverage of the semiconductor company. Five-star Mizuho Securities analyst Vijay Rakesh reiterated a Buy rating for AMD stock. He also boosted his price target for AMD to $515 from $415, suggesting a possible 16.7% upside for the shares.
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Forget margin or options. Here's how the pros trade STXRakesh increased his price target for AMD due to the ongoing AI boom. The analyst specifically noted the rise of agentic AI and what that means for AMD. Agentic AI largely relies on CPUs, rather than the GPUs that are used by generative AI. This growing agentic AI demand has also increased the demand for AMD’s CPUs. Investors will also note that AMD is the maker of both CPUs and GPUs, allowing it to serve both AI needs. The company is also working on an all-in-one server rack solution called Helios that is set to launch later this year.
Rakesh’s updated coverage didn’t come with just praise for AMD stock. The analyst increased his outlook for several AI companies due to the strong demand revealed in the latest earnings season. Other recent updates from Rakesh include ON Semiconductor (ON) and Seagate Tech (STX), both of which he assigned Buy ratings.
AMD Stock Movement Today
AMD stock was down 4.52% on Tuesday, but was still up 104.53% year-to-date. The stock has also gained 307.96% over the past 12 months.
AMD stock trading activity today saw some 14.52 million shares change hands, which was below the company’s three-month average daily trading volume of about 32 million shares.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Strong Buy, based on 27 Buy and eight Hold ratings over the past three months. With that comes an average AMD stock price target of $446.06, representing a potential 1.84% upside for the shares.
