Why AMD stock is skyrocketing today

Advanced micro devices (NASDAQ:AMD) The stock posted gains in Monday trading. The semiconductor company’s stock price rose 5.7% as of 10:45 a.m. ET.

AMD stock is gaining ground today following bullish reporting from Rosenblatt. The company named the chip stock one of its top investment ideas for the first half of 2025.

Before the market opened today, Rosenblatt released new coverage on AMD stock. The company gave the stock a buy rating and a one-year price target of $250 per share. At this point, this would represent approximately 100% additional upside potential.

Rosenblatt analysts expect AMD’s growing share of the central processing units (CPUs) and graphics processing units (GPUs) markets to contribute big gains for the stock. The team sees good prospects for the semiconductor specialist’s Epyc CPUs in the server and data center segment and also expects strong performance from the company’s M1350 and M1400 GPUs.

While Nvidia While many other artificial intelligence (AI) stocks posted huge gains in this year’s trading, AMD’s performance was relatively weak. Despite today’s gains, AMD stock is down about 15% in 2024 and is still trading in a range near its 52-week low. As stocks have underperformed this year, the stock has recently attracted attention from investors betting on a potential rebound.

Although AMD’s data center segment posted explosive growth, results fell short of some analysts’ expectations. Investors are also concerned about whether the company will be able to maintain momentum in this space. So far, the company doesn’t seem to be able to keep up with Nvidia in terms of advanced GPU performance for artificial intelligence applications.

On the other hand, the demand outlook for AI infrastructure remains quite good – and increasing spending in this area could further boost AMD, even as Nvidia’s processors remain the top choice for leading technology companies. The entire AI revolution is also probably still in its infancy. So while there are cyclical and competitive risks, AMD stock could be a worthwhile portfolio addition at current prices.

When our team of analysts has a stock tip, it might be worth listening. Finally, Stock Advisor The average total return is 901% – a stunning outperformance compared to 173% for the S&P 500.*

They just revealed what they think it is The 10 best stocks for investors who can buy it now… and Advanced micro devices made the list – but there are 9 more stocks you might be overlooking.

The story continues