Oversold shares of Advanced Micro Devices (AMD) are starting to bounce back strong. 

All after analysts at Jefferies initiated coverage of AMD with a buy rating, with a price target of $190 a share. AMD even just replaced Nvidia on the Wolfe Research Alpha List.

“Our views on NVDA and AMD haven’t changed, but the relative move in stock prices YTD causes us to make a tactical shift in priority, moving AMD to the Wolfe Alpha List, replacing NVDA, which is up ~90% YTD and ~100% since it was added to the list in November 2023,” added Wolfe, as quoted by Investing.com.

 JPMorgan recently said, “We believe that near-term the team is supply constrained, but given 2H supplier commitments and expanding supply, they are NOT capped at their $4B annual target,” Sur wrote in an investor note. “We believe the team can grow datacenter GPU revenue to $5B+ in CY24 and continue to take share from Intel in server and PC CPUs (we estimate 100 [basis points] of share gain in 1Q and 2Q server CPU share).”

The firm also raised its 2024 estimates on strong AI demand, with a $180 price target.

And while KeyBanc may have lowered its price target to $230 from $270. However, it did maintain an overweight rating, and sees AMD on track to capitalize on the growing demand for graphics processing units (GPUs) with the AI boom.