Advanced Micro Devices (AMD) stock was boosted higher on Wednesday by updated coverage from a top Wall Street analyst. Bank of America’s Vivek Arya reiterated a Buy rating and $300 price target for AMD stock, suggesting a possible 38.25% upside for the shares. While Arya’s price target is well below the Street-high of $377, which comes from Raymond James’ Simon Leopold, it is still above the analysts’ consensus price of $284.67 per share.
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Arya’s ongoing bullish coverage of AMD stock makes sense, as the analyst still believes the artificial intelligence (AI) sector has room to grow. He told CNBC‘s The Exchange that the AI boom is taking the computing sector “from the era of trains to the era of rockets.” He also said that he expects the pace of spending on AI to remain “very strong.”
While Arya largely praised AMD rival Nvidia (NVDA) during the interview, his overall praise of the sector had a ripple effect that was beneficial to other stocks in the AI sector. Other stocks mentioned by the analyst that will likely continue to benefit from the AI boom include Alphabet (GOOGL) and Broadcom (AVGO). Another major player in the space that Arya doesn’t have faith in is Intel (INTC), to which he assigned a Sell rating and $34 price target, implying a possible 21.79% downside.
AMD Stock Movement Today
AMD stock was up 1.14% on Wednesday, extending an 80.22% year-to-date rally. The stock has also increased 49.48% over the past 12 months.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 28 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $284.67, representing a potential 30.63% upside for the shares.
