In 2024, Nvidia (NASDAQ: NVDA) has captured significant attention for its cutting-edge semiconductor technology, its pivotal role in the artificial intelligence (AI) boom, and its exceptional performance in the stock market. However, it is essential not to overlook another major player in the chipmaking industry – Advanced Micro Devices (NASDAQ: AMD).
While AMD may not have matched the growth of its biggest competitor, its stock has consistently outperformed the benchmark S&P 500 stock market index, currently sitting at 17.19% in the green year-to-date. Furthermore, experts predict a bright future for the semiconductor giant based on the price targets set for AMD shares and recent rating revisions.
Recent developments have seen several analysts revising their price targets for AMD shares. CFRA analysts reaffirmed their ‘buy’ rating on June 3, setting a price target of $200, reflecting a 23.16% increase from the current AMD price of $162.39. Bank of America (NYSE: BAC) also expressed optimism by predicting a climb to $195 in the next 12 months, up from their previous target of $185. TD Cowen joined in with a ‘buy’ rating and a $200 price target, highlighting AMD’s alignment with Nvidia’s roadmap.
Citi remained positive but conservative, forecasting a climb to $176 over the next year. Susquehanna and Morgan Stanley (NYSE: MS) also offered $200 price targets, with Morgan Stanley sounding a note of caution about high expectations for the AI business.
Despite varying perspectives, analyst consensus remains bullish on AMD stock. According to TipRanks, out of 35 represented analysts, 28 rate Advanced Micro Devices as a ‘buy’, while 7 are ‘neutral’ on the technology firm. The average price target suggests a 17.64% increase to $191.03 in the next 12 months, with some bullish predictions reaching $235 and bearish ones at $140.
In conclusion, while Nvidia continues to shine, AMD’s resilience and potential for growth make it a compelling investment opportunity in the semiconductor industry.
