Advanced Micro Devices (AMD) stock slipped on Friday even as one analyst was unaffected by the recent fallout from Nvidia (NVDA) investing $5 billion in Intel (INTC). Five-star Bank of America analyst Vivek Arya reiterated a Buy rating and $200 price target for AMD stock, suggesting a 26.88% upside for the shares. He stated that the price target is “justified by AI growth and CPU share gains offset by slower growth in cyclical embedded/console markets.”
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According to Arya, the collaboration between Intel and Nvidia could actually turn into a positive for AMD. The analyst argued that Nvidia’s investment could enhance the x86 processor architecture. This is technology that’s created by Intel and shared with AMD. It’s the same architecture that powers most personal computers and servers.
To go along with that, Arya said that it could be years before the effects of the Intel and Nvidia collaboration are fully realized. This gives AMD the space needed to continue gaining momentum on Intel’s market lead without an immediate headwind to worry about.
AMD Stock Movement Today
AMD stock was down 0.31% on Friday but was still up 30.33% year-to-date. The shares have also climbed 1.26% over the past 12 months. Yesterday’s Intel and Nvidia news initially dropped AMD stock over 5%. However, the shares recovered throughout the day, closing just 0.75% lower. Arya’s confidence and praise for AMD stock have likely helped the shares avoid a larger fall as they reignite investor morale.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 22 Buy and 12 Hold ratings over the past three months. With that comes an average AMD stock price target of $188, representing a potential 19.17% upside for the shares.
