Shares of Advanced Micro Devices Inc. (NASDAQ:AMD) are trading higher Wednesday, adding to gains of more than 25% over the past month. Here’s a look at what’s going on.
What To Know: AMD shares are rallying this week after the chipmaker announced a new collaboration with HCLTech aimed at accelerating enterprise digital transformation. The two companies plan to establish joint innovation labs focused on developing solutions in AI, digital infrastructure and cloud computing.
AMD CEO Lisa Su said the partnership will help deliver cutting-edge technology to give businesses the solutions they need to accelerate innovation.
“Combining HCLTech’s expertise in digital transformation with our industry-leading EPYC, Instinct and Ryzen PRO processors will enable us to provide enterprises with customized, future-ready solutions that maximize the potential of AI, cloud computing and advanced analytics,” Su said.
Semiconductor stocks have seen strong momentum in recent trading sessions following easing tensions in the Middle East. AMD also got a boost this week after Melius Research analyst Ben Reitzes upgraded AMD from Hold to Buy and raised the price target from $110 to $175, reflecting growing confidence in the company’s positioning in the AI and enterprise computing space.
Earlier this month, multiple analysts came out with positive updates after AMD unveiled multiple new products at its "Advancing AI" event. Piper Sandler raised its target to $140 and reiterated an Overweight rating. Roth Capital and Evercore ISI also lifted their targets to $150 and $144, respectively, while Rosenblatt recently maintained a Buy rating with a $200 target.
Is AMD A Good Stock To Buy?
Wall Street analysts view AMD on the whole as a Outperform, given the history of coverage over the past three months.
But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past three months, AMD rose 35.59%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 35.9% over the past year.
AMD Price Action: AMD shares were up 3.17% at $142.82 at the time of writing, according to Benzinga Pro.
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