Analyst Cody Acree is confident that Advanced Micro Devices (AMD) is well-positioned to capitalize on the growing adoption of artificial intelligence (AI) in the technology sector. Acree has reaffirmed his Buy rating for AMD stock (ticker: AMD) and increased his price target to $145 from $108.
AMD stock is currently trading at $113.53, reflecting a 3.8% increase on Thursday.
Despite AMD’s latest earnings report meeting expectations, Acree remains optimistic due to the company’s positive updates on its traction in the AI market. CEO Lisa Su mentioned during a conference call that AMD anticipates the AI accelerator market in data centers to exceed $150 billion by 2027. Furthermore, Acree highlighted that AMD’s upcoming MI300 AI accelerator is on schedule for a fourth-quarter launch.
AMD Instinct accelerators, which are the company’s data-center chips commonly used for AI applications, have garnered strong interest from top-tier cloud providers, large enterprises, and leading AI companies.
Over the past year, AMD stock has seen a 14% increase, slightly trailing the 21% rise in the iShares Semiconductor exchange-traded fund (SOXX), which tracks the performance of the ICE Semiconductor Index.
