🔺🅱️U⃣L⃣L⃣I⃣S⃣H⃣🔺
🤑🤖🎯💥 AMD: Chipping Its Way to the Top! 💥🤖🎯🤑
Kia ora Tiger traders!
What do you get when you mix high-performance semiconductors and a dash of AI? A chip-tastic combo ready to take over the market! 😎
Just look at AMD flexing on the chart! Emerging from the handle like a champ, this stock’s ready to party once the market decides to show some strength! 💪 Right now, the price is sitting pretty around $162, but keep your binoculars🕵️♀️ ready for the next levels: monthly top at $188, with a sizzling chance to break the bank at $200. Could AMD become the next $200 chip queen? 👑
🎯 Options Play
Got your 👀’s on AMD’s next 🌊 ? Those January strikes at $180, $188, or $200 might be your golden 🎫 opportunity. With all the tech hype and 🤖AI mojo going around, we might be seeing AMD hit new highs faster than you can say “Silicon Valley!”
📊 Analyst Buzz
Analysts are all in on AMD’s tech superiority. 27 top-notch analysts have stamped it with a Strong Buy rating, forecasting targets up to $265. 🤑 Bank of America recently kept their buy rating at $180, while Wells Fargo is even more jazzed with a target of $205. Some hedge funds are practically throwing cash at AMD, like your favourite kid with extra allowance 💵. AI, gaming, and data centers are throwing fuel on the AMD rocket 🔥!
Source: Yahoo Finance
Bank of America (BofA) analysts reiterated a Buy rating for AMD (NASDAQ:AMD) stock ahead of the company's “Advancing AI” event scheduled for October 10.
Analysts highlighted that AMD's previous AI event on December 6 was followed by significant stock gains of 19% and 80% over the subsequent one and three months, outperforming the Philadelphia Semiconductor Index index's 10% and 37% increases.
The upcoming event, where AMD is expected to unveil roadmap updates in AI and server CPU alongside supporting cloud customer comments, “could reinvigorate AMD stock,” which has seen a modest year-to-date (YTD) increase of 9%, lagging behind SOX's 22% rise.
Despite the competitive landscape in AI accelerators becoming increasingly crowded, BofA highlighted the potential for AMD to increase its market share.
The current market consensus estimates AMD's AI sales to reach $5.1 billion in 2024, with a potential to double year-over-year to $10 billion in 2025.
The current consensus for AMD's AI sales in 2024-2026, estimated at $5.1 billion, $9.7 billion, and $12.8 billion, suggests the company’s market share in accelerators will likely remain around 5-7%, significantly lower than its 20%+ share in consumer CPUs and gaming GPUs.
While AMD has made an impressive start, BofA cautions that expanding its share further could be challenging given NVIDIA Corporation's (NASDAQ:NVDA) dominant 80-85%+ market share and strong position in the cloud, alongside competition from cost-optimized custom ASICs from companies like Broadcom (NASDAQ:AVGO) and Marvell (NASDAQ:MRVL).
However, if AMD can demonstrate a credible path to securing over 10% of the AI market share by 2026, it could add approximately $5 billion to its sales, with potential earnings per share (EPS) of around $8-$9, compared to the consensus estimate of $7.37.
“Faster growth could also help AMD rerate towards 30-55x forward price-to-earnings (PE) it managed to trade during prior periods of rapid share gains and 40%+ annual sales growth,” BofA analysts said.
“We expect AMD to emphasize its improving end-end positioning including recent acquisitions (ZT Systems, Silo AI), open-source software (ROCm) and networking (infinity fabric),” they added.
BofA also reflected on the broader debates affecting AMD's stock performance, including competition from Intel (NASDAQ:INTC), sluggish PC demand, rising competition from ARM-based servers and PC CPUs, challenges in raising prices for AI silicon, and the pace of recovery in non-AI embedded and gaming markets. These segments are crucial as they represent 20-25% of AMD's sales and are considered the most profitable yet cyclical.
💼 Hedge Fund Party
Ken Fisher and his friends at Fisher Asset Management are scooping up AMD like it’s on sale. In fact, 124 hedge funds are in the game, betting that this chipmaker has legs (and silicon) to go the distance! 🚀 They see AMD cashing in on its AI advancements~especially with Oracle recently partnering with them to boost cloud infrastructure. Yep, you heard it: Oracle and AMD are going steady and this might be just the start of a beautiful friendship! 🤝
Fun fact:
AMD chips were used in the very first PlayStation 4 consoles! Gaming roots run deep with this one. 🎮
Hey Tiger Traders, are you strapping in for AMD’s next big rally? What’s your strategy for riding this silicon rocket to the top?
@TigerGPTWhat’s the best way to leverage AMD’s Oracle partnership for a long-term hold?
Happy trading ahead. Cheers, BC 🍀
@Tiger_comments @TigerPicks @TigerStars @Daily_Discussion @TigerPM @TigerOptions @Kiwi_G
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Let's go, AMD! $Advanced Micro Devices(AMD)$
Sorry! I can't answer this question.
Good luck, BC! 💜
🚀🚀🚀🚀🚀$Advanced Micro Devices(AMD)$
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