Advanced Micro Devices (AMD) stock was up on Wednesday after Forrest Norrod, the company’s Executive Vice President and General Manager of its Data Center Solutions Business Unit, addressed higher prices for its server CPUs. During the Communacopia Technology Conference, he told PC Gamer that, “We charge more for our CPUs than our competitor does, and the reason is because we’re giving superior value.”
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Norrod highlighted the success of AMD’s server CPU business, which holds 41% of the market. That’s a huge market share for the semiconductor company, as it only entered the server CPU sector seven years ago. That’s major progress against rival CPU maker Intel (INTC), and reflects a similar change in the consumer market as AMD’s Ryzen processors continue to gain market share.
However, Norrod’s comments only apply to the server CPU operations. When it comes to the consumer front, AMD has continued to competitively price its CPUs against Intel. The same is also true for its graphics processing unit (GPU) business, which regularly releases graphics cards that are priced lower than rival Nvidia’s (NVDA).
AMD Stock Movement Today
AMD stock was up 3.63% on Wednesday, extending a 33.68% year-to-date rally. The company’s shares have also climbed 3.98% over the past 12 months. It’s been a good year for the company, as the AI boom has resulted in increased demand for its server components. This momentum will likely continue through the rest of the year due to ongoing demand for AI services.
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 11 Hold ratings over the past three months. With that comes an average AMD stock price target of $184.26, representing a potential 14.08% upside for the shares.
