Advanced Micro Devices (NASDAQ: AMD) stock has been trending downwards for the past two months. Despite the short-term headwinds, the stock is up 64% year to date.
Wall Street analysts believe the AMD stock has more room to grow, which is why they put up a high price target for the next 12 months.
The average analyst target price sees a 34% gain
Analyst consensus at TipRanks is a ‘strong buy’ for the AMD stock based on 32 analysts in the last three months. Their average price target is $141, 34% higher than the current price of $105.
In its recent Q2 earnings report, AMD reported slightly higher earnings and revenue results compared to Wall Street estimates. What’s more important for the future price of AMD stock, though, are the comments from CEO Lisa Su.
In the release, Su said, “Our AI engagements increased by more than seven times in the quarter as multiple customers initiated or expanded programs supporting future deployments of Instinct accelerators at scale.”
Su also confirmed that AMD’s widely anticipated MI300 accelerators, which are data center processing units intended for AI projects and applications, are on track to launch during the fourth quarter.
With the current hype around AI and the decreasing supply of competitor Nvidia chips, this could turn out to be a treasure trove for AMD in the next 12 months.
AMD stock technical analysis
The analyst’s optimism could play out in the long term. In the short term, however, the AMD stock has broken out of the descending triangle, which is a bearish pattern.
The $110 support level managed to hold for two months, but now that it’s broken, the price is likely to go as low as $90. The only way to negate this pattern is if the stock price returns above $110 in the coming days.
If you’re bullish on the AMD stock, any pullback could present a good buying opportunity.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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