Analyst predicts 20% upside for AMD on AI chip excitement
- AMD stock was the top performer in the Nasdaq 100 on Friday
- Analyst predicts 20% upside for AMD stock due to excitement over AI chips
- Microsoft’s use of AMD chips for Azure could generate more upside in AI
- 38 out of 49 analysts surveyed rate AMD stock as a Buy
- AMD stock has surged 160% in the last 12 months
Advanced Micro Devices (AMD) stock was the top performer in the Nasdaq 100 on Friday, with shares climbing 2.4% to $216.49. This surge was driven by excitement over the company’s artificial-intelligence chips, as analyst Ben Reitzes increased his price target on AMD to $265 from $192, implying a 20% increase. Reitzes believes that with Microsoft using AMD chips for Azure, there is potential for more upside in AI. In fact, 38 out of 49 analysts surveyed rate AMD stock as a Buy. Over the last 12 months, AMD stock has surged 160%, benefiting from investor AI hype. While Reitzes sees AMD as a strong player in AI, he doesn’t believe it will negatively impact Nvidia, which is considered the industry’s driving force.
Factuality Level: 3
Factuality Justification: The article focuses solely on the positive aspects of AMD stock and its potential for growth, without providing a balanced view or discussing any potential risks or drawbacks. It also heavily relies on the opinions of a single analyst, which may not represent the full spectrum of views in the market. The article lacks depth and critical analysis, presenting a one-sided and overly optimistic perspective.
Noise Level: 3
Noise Justification: The article provides relevant information about AMD’s stock performance, analyst predictions, and comparisons with competitors like Nvidia. It stays on topic and supports its claims with data and examples. However, it lacks in-depth analysis of long-term trends or consequences of decisions, and it does not provide actionable insights or solutions for the reader.
Financial Relevance: Yes
Financial Markets Impacted: Nasdaq 100, S&P 500
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the performance of Advanced Micro Devices (AMD) stock and its potential upside due to excitement over the company’s artificial-intelligence chips. This information is relevant to financial markets and companies, specifically the Nasdaq 100 and S&P 500. However, there is no mention of any extreme event or its impact.
Public Companies: Advanced Micro Devices (AMD), Microsoft (MSFT), Nvidia (NVDA)
Key People: Ben Reitzes (Melius Research Analyst)
Reported publicly:
www.marketwatch.com 
