Advanced Micro Devices is the IBD Stock Of The Day as the chipmaker catches up with rival Nvidia with the capabilities of its latest processors for artificial intelligence. AMD stock is climbing after a prolonged pullback.
AMD stock peaked at 227.30 in March 2024 amid excitement about the then-emerging generative AI trend. But AMD gradually drifted lower, bottoming at 76.48 in April as Nvidia grabbed market share and mind-share in the AI space.
However, with its latest Instinct data center accelerators, AMD has closed the performance gap with Nvidia processors, HSBC analyst Frank Lee said in a client note Thursday. Lee upgraded AMD stock to buy from hold and doubled his price target to 200 from 100.
On the stock market today, AMD stock rose 1.6% to close at 146.42.
The stock's recent high of 147.75 offers an early entry, according to IBD analysis. However, AMD stock has yet to form a proper base.
In a positive move, AMD stock rose above its 200-day moving average line in mid-June, IBD MarketSurge charts show.
HSBC's Lee said AMD has caught up with Nvidia's Blackwell series processors with its MI350 accelerator.
AMD Stock Gets Price-Target Hike
TD Cowen analyst Joshua Buchalter on Thursday reiterated his buy rating on AMD stock and raised his price target to 165 from 115.
"With MI350 now officially launched in June, investors will be looking for evidence of AMD's competitiveness vs. Nvidia … ahead of the key MI400 ramp in 2026," Buchalter said in a client note. "We believe engaged customers such as Oracle, Meta and xAI should continue to broaden their deployments, with training important to the story. We believe Amazon will also begin to layer in later in the year."
AMD plans to report its fiscal second-quarter results on Aug. 5.
AMD stock is on the IBD Tech Leaders list.
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