Keep an eye on Advanced Micro Devices (AMD).
On June 9, AMD will hold its analyst day, which Piper Jaffray says could be “transformative.”
The firm also has an outperform rating on the stock with a price target of $140 a share. In addition, the firm says the success of AMD’s organic business, particularly servers and commercial PCs, and secondly the recently closed acquisition of rival Californian chip maker maker Xilinx, which makes programmable chips used in data centers, as noted by Barron’s.
Analyst Harsh Kumar added, “Despite all the moving pieces (slowing consumer PC market and a semi-custom peak in 2023), we expect AMD to provide a long-term growth rate of 17%-20% through 2026. The growth rate will be determined by the success of Xilinx, which is currently growing around 20% year-over-year,” he added, “noting that the server business is on track to double year-over-year, and the commercial PC segment is ‘holding up well.’”
And Stifel analyst Patrick Ho expects, “the company to highlight emerging market opportunities, such as in the data center, and how this growth will drive additional capacity expansion for foundry/logic devices as well as other types of semiconductor products,” as reported by TheFly.com.
From a current price of $104.86, we’d like to see the AMD stock test $125, near-term.