Shares of Advanced Micro Devices climbed approximately 3.7% in Wednesday's afternoon trading session after Wells Fargo included the chipmaker in its second-quarter tactical ideas list.
The institution projects a positive market setup ahead of AMD's first-quarter earnings report scheduled for May 5, citing robust demand for its EPYC server CPUs and a potential upcoming artificial intelligence GPU release. Wells Fargo also highlighted that the company's "Advancing AI" event in July could serve as a significant catalyst.
Analyst Aaron Rakers reaffirmed his "Buy" rating on the stock with a price target of $345, suggesting potential upside from current levels. Despite a nearly 98% surge over the past 12 months, AMD's stock has declined about 2% year-to-date.
This trading activity follows a hoax report that claimed AMD had agreed to acquire Intel, which gained traction online on April 1. There is currently no credible information to support the existence of an acquisition deal between the two chipmakers.
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