Advanced Micro Devices (AMD) stock rallied on Wednesday after the semiconductor company’s shares were upgraded by Erste Group analyst Stephan Lingnau. The analyst upgraded shares of AMD stock to a Buy rating from a Hold rating, but didn’t provide a price target for the shares.
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Lingnau highlighted the potential of AMD in a research note to clients. In it, he said that the chip company has good growth prospects that should result in its shares moving higher. He cited increasing demand for processors and graphics processing units (GPUs) in data centers as a positive for the tech company’s stock.
Lingnau joined a growing list of analysts who have upgraded their coverage of AMD stock following an export change. President Donald Trump lifted the export ban on artificial intelligence (AI) chips to China, opening AMD, as well as rivals Nvidia (NVDA) and Intel (INTC), to a huge market for their high-performance products.
AMD Stock Movement
AMD stock was up 1.42% on Monday, extending a 29.88% year-to-date rally. The shares have also climbed 6.98% higher over the past 12 months. While AMD hasn’t performed as well as GPU rival Nvidia, the AI boom has still been a boon to the tech company’s shares.
Other recent analyst updates fueled by the China chip export ban being lifted include:
- A price target increase to $165 from $145 from five-star Citi analyst Christopher Danely.
- A price target increase to $140 from $95 from five-star Bernstein analyst Stacy Rasgon.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 25 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $145.90, representing a potential 7.22% downside for the shares.
