Shares of chipmaker Advanced Micro Devices (AMD) are surging on Monday after Piper Sandler raised its price target from $125 to $140 while maintaining a Buy rating. The investment firm said that it is encouraged by AMD’s latest product launches, especially the new Helios rack system, which it believes could help drive strong growth in AMD’s Instinct AI accelerator business. These comments came shortly after AMD revealed its new MI350 AI chips and previewed the upcoming MI400 series.
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Notably, five-star Piper Sandler analyst Harsh Kumar also pointed out that AMD’s biggest segment, its client business, is starting to show signs of improvement. He noted that the company is seeing some “pull-ins,” which suggests that customers are ordering earlier than expected. Kumar added that AMD’s GPU business could bounce back by the fourth quarter of Fiscal 2025 once the headwinds from China-related issues fade.
As a result, investors appear to be more confident in AMD’s strategy and upcoming AI products, with Piper Sandler’s revised forecast suggesting that AMD can keep gaining ground in the competitive semiconductor market. Interestingly, it is worth noting that the positive outlook also helped boost the shares of other chipmakers, such as Nvidia (NVDA), Intel (INTC), Broadcom (AVGO), and Marvell (MRVL).
Is AMD a Buy, Sell, or Hold?
Overall, analysts have a Moderate Buy consensus rating on AMD stock based on 22 Buys, 11 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMD price target of $129.41 per share implies 1.9% upside potential.
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