What's Going On With AMD Stock Thursday?
Portfolio Pulse from Anusuya Lahiri
AMD stock is trading higher as UBS analyst Timothy Arcuri raised his price target to $220, citing confidence in AMD's data center GPU revenue opportunity. Arcuri's analysis is based on firm demand commitments for AMD's MI300A/X units and sufficient CoWoS capacity to compete with Nvidia. He projects AMD could reach $5 billion in data center GPU revenue this year and anticipates the company's EPS to annualize at $6+ exiting this year, growing to $8 by the second half of 2025. AMD's stock outperformed the broader indexes last year with a 143% gain.
January 25, 2024 | 7:01 pm
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POSITIVE IMPACT
UBS analyst Timothy Arcuri raised his price target for AMD to $220, expressing confidence in AMD's data center GPU revenue, which could reach $5 billion this year. AMD's EPS is expected to grow, and the stock has already gained 143% last year.
The positive analyst rating and raised price target by UBS, along with the expected increase in data center GPU revenue and EPS growth, are strong indicators of potential stock price appreciation in the short term. The stock's past performance also supports this outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
AMD is expected to have sufficient CoWoS capacity to do 10%+ the volumes of Nvidia, indicating a competitive stance in the GPU market. Nvidia's position as a direct competitor is acknowledged but not the primary focus of the article.
While the article suggests AMD is positioning itself to compete more aggressively with Nvidia, there is no specific news about Nvidia that would directly impact its stock price in the short term. Nvidia is mentioned as a benchmark for AMD's growth.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50