AMD's Rising Star - What's Behind Goldman Sachs' Surprising Price Target Increase?
Portfolio Pulse from Anusuya Lahiri
Goldman Sachs analyst Toshiya Hari has maintained a Buy rating on Advanced Micro Devices Inc (AMD) and increased the price target from $137 to $157. The upgrade is based on higher revenue and EPS estimates for 2024 and 2025, reflecting broad-based adoption of AMD's MI300 Data Center GPU. Hari also sees potential benefits for Nvidia, Arm Holdings, Broadcom, Marvell Technology, Credo Technology, Micron Technology, and Intel from data center AI infrastructure build-out and PC volume growth. AMD's stock traded slightly lower at $138.56.
December 18, 2023 | 5:29 pm
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Goldman Sachs analyst Toshiya Hari has reaffirmed a Buy rating on AMD and raised the price target to $157, based on positive revenue and EPS projections driven by the MI300 Data Center GPU's adoption.
The price target increase for AMD is a direct result of the analyst's positive outlook on the company's revenue and earnings, particularly from the Data Center GPU segment. This is likely to be viewed positively by investors and could lead to a short-term increase in AMD's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Intel is identified as a key beneficiary of a resumption in PC volume growth, which could positively impact its stock.
Intel's mention as a beneficiary of PC volume growth indicates a positive sentiment from the analyst, which could translate into a short-term positive impact on INTC's stock price.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Micron is bullish in the eyes of the analyst, with expectations of a multi-quarter positive EPS revision cycle due to improving industry supply/demand dynamics.
The analyst's bullish stance on Micron, anticipating an EPS revision cycle, suggests a positive short-term impact on MU's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Nvidia is mentioned as one of the companies well-positioned to benefit from the ongoing build-out of data center AI infrastructure.
While the focus of the article is on AMD, Nvidia's mention as a beneficiary of the data center AI infrastructure expansion suggests a positive outlook for NVDA as well, potentially leading to a short-term positive impact on its stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70