Many investment banks raised AMD target price "GPU old two" tomorrow can usher in a comeback?
Caixin Three U.S. investment banks raised their price targets on AMD (Hyperion Semiconductor) on Monday (June 12) local time, after the chip giant teased it would showcase next-generation data center and artificial intelligence (AI) technologies at an event tomorrow.
Among them, Wedbush (Wedbush) raised its price target for AMD significantly from $95 to $145 per share, while Keybanc (Keybanc) raised its price target from $110 to $150, and both investment banks also reiterated their Overweight ratings.
In addition, investment bank Rosenblatt gave a Buy rating and set its target price at $200 per share, the highest price target given by any investment bank.
According to the financial website, AMD has received "Buy" ratings from 16 institutions, "Overweight" ratings from 5 institutions and "Hold" ratings from 6 institutions. Hold) ratings from 16 agencies, 5 agencies' Underweight ratings and 6 agencies' Hold (Hold) ratings, with no agencies giving Underweight and Sell (Sell) ratings.
As of this writing, AMD shares are up 3.4% intraday and now trading at $129 per share. The stock has rallied 100% year-to-date and has surpassed many investment banks' price targets.
Due to the AI wave started by chatbot ChatGPT, the demand for arithmetic chips exceeded supply and at one point pushed Nvidia's market capitalization over the $1 trillion mark. Many investors missed the opportunity of Nvidia, they will look to the GPU "number two player" AMD.
The intelligent computing power required for AI is mainly based on the computing power provided by AI chips such as GPU, GPGPU and AISC, which are used for training and reasoning of artificial intelligence. Among them, GPU is a special hardware device for processing graphics, video, games and other high-performance computing, with a greater advantage in arithmetic power compared to other hardware stand out.
AMD previously announced on its website that the company will host the "AMD Data Center and AI Technology Premiere" on Wednesday, June 14 at 01:00 a.m. BST, "a live event that will showcase the company's growth strategy and growing data center and AI portfolio and capabilities. "
At that time, "AMD's CEO, Zifeng Su, will join AMD executives and key customers to detail new products and the momentum of data center, AI, adaptive, and high-performance computing solutions." Traders are now betting that the event will trigger dramatic stock price swings.
Through organic growth and outbound acquisitions, AMD has formed three businesses: CPU+GPU+Embedded. Whether in the CPU or GPU field, AMD has gained the "industry second" position, and the company does not hide its ambition to surpass Nvidia, intending to remove the "second" hat.
At the Q1 earnings meeting, Zifeng Su said that the company has made artificial intelligence its first strategic focus and is confident in its strength, and is now actively working with all customers to jointly bring solutions to market, including the upcoming Instinct MI300, Ryzen 7040 series processors with AI engines, and a series of data center SoC/HPC gas pedals.
Among them, MI300 is powerful and may become the "ultimate weapon" that can compete with Nvidia. The Instinct MI300 gas pedal will help the company capture the market by meeting all the requirements of the AI and HPC/supercomputing ecosystem, according to ZF Su.
