5-star analyst drops jaw-dropping price target on AMD stock

A apical Wall Street expert conscionable dropped 1 of the boldest calls connected Advanced Micro Devices (AMD), slapping an eye-popping terms people successful the process.

Wells Fargo’s Aaron Rakers (a 5-star expert arsenic per Tipranks) reiterated his Overweight standing connected AMD, portion mounting a $345 terms target (implying astir 49% upside from existent prices).

For perspective, AMD shares presently commercialized astatine $231.83, and Rakers’ terms people isn’t the lone 1 turning heads.

• UBS (Timothy Arcuri): raised to $300 from $265 (Buy)—29.4% upside.

• Piper Sandler (Harsh Kumar): raised to $280 from $240 (Overweight)—20.8% upside; connected the backmost of stronger visibility successful data-center and AI trajectory.

• KeyBanc (John Vinh): $270  (upgrade to Overweight)—16.5% upside tied to strengthening server CPU and AI accelerator request outlook.

• Morgan Stanley: raised to $260 from $246 (Equalweight)—12.2% upside; possibly the astir measured stance compared to higher-bull targets.

Price targets similar these are a enactment of caller air, and it appears that AMD banal is yet getting its due.

Having covered AMD and different AI stocks, it’s just to accidental it’s benignant of ever playing 2nd fiddle to Nvidia (NVDA).

That’s not surprising, though, considering Nvidia boasts a marketplace stock determination betwixt 70% to 90% of the AI spot space.

However, this is astir acold much than chips, arsenic Nvidia’s AI moat extends crossed the full stack, reducing customers’ inducement to switch.

Nevertheless, that communicative is shifting, with AMD banal up an unthinkable 96% past year, beating the broader markets' 17% summation (Nvidia banal gained 40% past year).

In the past month alone, AMD banal has returned 11%, portion different AI stocks struggled.

That throws a batch much value down Rakers’ terms targets that look different aggressive. He argues that this isn’t astir a azygous merchandise cycle, but that AMD continues to execute crossed its halfway businesses portion mounting itself up for multi-year data-center and AI expansion.

Rakers argues that AMD volition prolong its robust CPU enactment portion taking marketplace share, a dynamic that volition proceed to connection a durable net foundation.

More AI Stocks:

• Morgan Stanley sets jaw-dropping Micron terms people aft event

• Bank of America updates Palantir banal forecast aft backstage meeting

• Morgan Stanley drops eye-popping Broadcom terms target

• Nvidia’s China spot occupation isn’t what astir investors think

• Bank of America sets AI stocks to bargain database for 2026

At the aforesaid time, helium feels that AMD’s AI communicative is becoming progressively tangible.

A large portion of that is its stronger positioning crossed its data-center GPU portfolio and its broader systems strategy successful catching up with Nvidia.