Advanced Micro Devices (NASDAQ:AMD) stock is rising higher on Wednesday as investors react to an upgrade from NewStreet Research analyst Pierre Ferragu.
The NewStreet Research analyst upgraded shares of AMD stock from a “neutral” rating to a “buy” rating today. To put that in perspective, the analyst consensus rating for AMD shares is a moderate buy based on 30 opinions.
Ferragu continues to hold a $215 price target for AMD stock alongside the upgrade. That represents a potential upside of about 27% for the stock. It’s also well above the analyst consensus price prediction of $151.26 per share.
What’s Behind the AMD Stock Upgrade?
Here’s what the NewStreet Research analyst said in a note to clients obtained by CNBC:
“AMD best way to play a fast adoption scenario, with most valuation and expectation upside […] The fast adoption scenario corresponds to the AMD guide for $400bn spent on AI chips in 2027, and corresponds to the full picture we have described in the first part of this series. In essence, it is a scenario in which AI usage continues to grow faster than deployments, with spending on AI accelerated growing unabated.”
AMD stock is up 4.5% as of Wednesday morning. That comes as some 25 million shares change hands. That’s still below its daily average trading volume of about 64.3 million shares.
Investors on the lookout for more of the most recent stock market stories are in the right place!
We have all of the hottest stock market news that traders need to know about on Wednesday! That includes everything happening with eBay (NASDAQ:EBAY) layoffs, SAP (NYSE:SAP) layoffs and why Plug Power (NASDAQ:PLUG) stock is in the news. You can read up on these topics at the following links!
More Stock Market News for Wednesday
- eBay Layoffs 2024: What to Know About the Latest EBAY Job Cuts
- SAP Layoffs 2024: What to Know About the Latest SAP Job Cuts
- Warning: This Analyst Is ‘Pulling the Plug’ on Plug Power (PLUG) Stock
On the date of publication, William White 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.
