AMD: stock shines, with New Street upgrade

(CercleFinance.com) - On Wednesday, AMD posted one of the strongest gains in the S&P 500 index, supported by a rating upgrade from analysts at New Street Research, who are now buyers.


The US processor manufacturer's shares closed up 3.3%, bringing their increase since 1 January to over 19%. The stock has now gained 135% over the last 12 months.

In their comments, New Street justifies its optimism with the prospect of a total investment of $400bn devoted to AI-powered data center chips by 2027.

AMD emerges from our analysis not only as the most attractively valued and promising story in this favorable scenario, but also as the one with the most potential for upward revision of forecasts and upside potential, even if only half of this investment ($200bn) were to materialize, the broker says, which has a target price of $215 for the share.


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