Advanced Micro Devices ( (AMD) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Advanced Micro Devices (AMD) is capturing significant attention from investors as it prepares to announce its second-quarter earnings on August 5. The company’s stock has surged by approximately 38% this year, buoyed by strong first-quarter results, promising developments in the AI sector, and the lifting of chip export restrictions. Analysts are cautiously optimistic about AMD’s performance, expecting a 27% revenue increase to $7.41 billion, although earnings per share are anticipated to decline by 30% year-over-year. The company’s new Instinct MI350X and MI355X GPUs, along with the upcoming MI400X AI accelerator, are expected to bolster its AI revenue and enhance its competitive edge against rivals like Nvidia.
Wall Street analysts have shown a positive outlook on AMD, with Erste Group’s Stephan Lingnau upgrading the stock from Hold to Buy, citing growth in demand for high-performance CPUs and GPUs in data centers. Citi analyst Christopher Danely has also raised his price target for AMD to $165, driven by the company’s strong positioning in AI-related growth. Despite some concerns about high expectations, AMD’s stock continues to rise, reflecting its promising growth prospects. The company’s shift towards American manufacturing, as highlighted by CEO Lisa Su, is seen as a strategic move, though it may lead to increased production costs.