Advanced Micro Devices (AMD) continues to explode.
Just days after noting AMD could test $200 a share – which hasn’t happened just yet – the stock ran $11.56 higher to $174.23.
As noted by CNBC, “The record valuations reflect continued investor interest and hunger for companies that design and sell graphics processors for artificial intelligence. GPUs were originally designed to play computer games. But they’re also essential for training and deploying intricate AI models like OpenAI’s GPT, leading to a massive surge in sales.”
TD Cowen also raised its price target on AMD to $185 from $130 with an outperform rating.
“The firm said challenges in Gaming and the correction in Embedded are reflected in Street estimates already but the AI TAM is still ahead for the company with potentially large upside over the next couple years as an increasingly capable GenAI alternative,” added TheFly.com.