Advanced Micro Devices (AMD) could see higher highs.
Sure, the tech stock already ran from about $85 to $127. But it could run even more for two key reasons. One, AMD just revealed its new high-powered AI chips, referred to as MI300, which will compete against Nvidia superchips. The MI300 can provide up to 192GB of memory. The significant memory capabilities mean AMD’s new chip could be applied in AI large language models, commonly known as “LLMs,” says Yahoo Finance.
Two, Reuters reported that Amazon’s cloud unit is considering using AMD’s new AI chips. In fact, according to Reuters, “While AWS has not made any public commitments to use AMD’s new MI300 chips in its cloud services, Dave Brown, vice president of elastic compute cloud at Amazon, said AWS is considering them.”
“We’re still working together on where exactly that will land between AWS and AMD, but it’s something that our teams are working together on,” he added. “That’s where we’ve benefited from some of the work that they’ve done around the design that plugs into existing systems.”
Three, AMD CEO Dr. Lisa Su is very bullish.
“We look at the data center. I mean, this is an incredible market. So, if you think about just AI chips in the data center, we think this year it’s about a $30 billion market,” Su added. “We think over the next three or four years it’s going to grow over 50% every year. So, it’s going to be like a $150 billion market.”
Shares of AMD last traded at $127.04. From here, $200 may not be out of the question.
Better, analysts are bullish, too. Jefferies just raised its target to $145 from $100. Craig-Hallum raised its target to $158 from $10. BMO Capital raised from $110 to $150. Raymond James raised from $110 to $145. Mizuho raised from $90 to $140.
We could go on… Point is, the Street loves AMD.