Advanced Micro Devices (NASDAQ:AMD) has enjoyed an outstanding month and it may be about to get even better. The semiconductor producer is among the year’s top winners of the recent artificial intelligence ) boom. Shares are currently up more than 60% so far this year. But one expert believes AMD stock can rise even further, reaching impressive new heights in the coming months.
According to one Bank of America analyst, AMD stock is well-positioned to keep climbing toward $150 per share. That would be a substantial spike of around 40% from the current roughly $105 share price. However, BofA analyst Stephen Suttmeier has made a strong case for why the chipmaker is a likely 2023 breakout stock.
Let’s take a closer look.
What’s Happening With AMD Stock?
After an excellent week, AMD stock is trending downward today amid some volatility. As of this writing, shares are down about 1%. However, these declines can be attributed more to general market momentum than anything company-specific. Fellow chip stocks Nvidia (NASDAQ:NVDA) and ON Semiconductor (NASDAQ:ON) are also falling today after trending upward all week.
Despite today’s declines, though, AMD stock is in an excellent position to keep rising according to Suttmeier’s recent take. The analyst stated in a note to clients:
“A decisive rally above 102.54 would confirm this bullish pattern and favor further upside to 150. Until then, holding first support near 93-91 would keep this bullish setup intact.”
This represents a stark turnaround for BofA on AMD stock. As StreetInsider notes, just over a week ago, BofA Securities analyst Vivek Arya maintained a “neutral” rating on the chipmaker. However, Arya did raise his share price target from $95 to $105, a price point that AMD has since passed.
Overall, Wall Street remains bullish on Advanced Micro Devices, with 18 out of 26 analysts rating shares as a “buy” on TipRanks. Additionally, institutional investment in semiconductor companies like NVDA and AMD rose during Q1. That pace isn’t likely to slow down. All of this suggests that Suttmeier’s bullish thesis is well supported — and that 40% upside is certainly possible for the stock.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.