Recently, Zacks.com users have been paying close attention to Advanced Micro (AMD). This makes it worthwhile to examine what the stock has in store.
A Wall Street analyst is projecting that Advanced Micro Devices (NASDAQ: AMD) stock could see further momentum over the coming year.
The AI trade is trying to reassert itself on Monday, as the recent selloff may have been a bit overdone.
SpaceX could unlock massive new markets that don't even exist today. However, Micron and AMD are handily beating SpaceX on the top and bottom lines.
Direxion Daily AMD Bull 2X ETF effectively tracks AMD's strong momentum, delivering 705% returns versus AMD's 271% over one year. AMUU achieves 2x daily leverage mainly via derivatives, exposing investors to compounding decay and significant counterparty risk—making it best suited for short-term tactical trades. Despite AMD's robust growth and attractive PEG ratios, AMUU's extreme volatility (245% annualized) and daily reset mechanism erode value in non-directional markets.
Shares of ON Semiconductor (NASDAQ:ON | ON Price Prediction) are down 20% in early Friday trading, sliding to $95 after the chipmaker unveiled an all-stock acquisition of Synaptics (NASDAQ:SYNA).
Our Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) call sits on a strong analyst tailwind and a stretched multiple.
Advanced Micro Devices is rated a buy, driven by robust fundamentals and a compelling dual-engine growth thesis in both GPUs and CPUs. AMD's AI GPU position is strengthened by hyperscaler diversification needs, with multi-year, multi-gigawatt deals from Meta and OpenAI providing long-term demand visibility. CPU opportunity is underappreciated; AMD's EPYC franchise benefits from AI infrastructure growth regardless of GPU winner, with CPU revenue share at a record 46.2%.
Advanced Micro Devices (NASDAQ: AMD) stock has surged more than 130% this year, but Wall Street is still chasing the stock higher. In June alone, Barclays, UBS, Mizuho and Bernstein all raised their price targets on the chipmaker as analysts are no longer treating AMD as just a second-place GPU challenger to Nvidia.
Melius Research's head of tech research, Ben Reitzes, told CNBC to lean into chip-stock weakness and stay clear of the cloud giants paying for the buildout.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Advanced Micro Devices (NASDAQ:AMD) both posted earnings confirming AI infrastructure dominates semis.
AMD's HPC gains, surging data center revenues and AI infrastructure wins bolster its growth outlook, even as NVIDIA and Broadcom intensify competition.