Key Points
Shares of Advanced Micro Devices (NASDAQ: AMD) surged by as much as 8.2% on Thursday, October 5, 2023, after Bernstein analyst Stacy Rasgon raised his price target from $235 to $265. Despite maintaining a market perform (hold) rating, Rasgon remains optimistic about AMD’s potential, especially in light of its focus on higher-margin server and data center chips.
The stock has gained an impressive 189% over the past year and is currently trading at a high multiple of earnings, standing at 104 times earnings and 41 times forward earnings. Notably, 73% of Wall Street analysts currently rate AMD as a buy or strong buy, with an average price target of approximately $289, suggesting potential upside despite recent gains.
