AMD stock leads ‘winner AI trading’ to first new record close in 25 months

AMD stock leads ‘winner AI trading’ to first new record close in 25 months

Posted: January 18, 2024 at 9:39 AM ET

Shares of Advanced Micro Devices Inc. On track to close at an all-time high on Thursday, marking the name’s first new record finish in more than 25 months.

AMD AMD shares rose 3.1% to $165.20 shortly after Thursday’s open, amid a broader rally in semiconductor names on the heels of Taiwanese semiconductor maker TSM’s upbeat outlook. The stock’s current record close of $161.91 came on November 29, 2021.

TSMC…

Shares of Advanced Micro Devices Inc. On track to close at an all-time high on Thursday, marking the name’s first new record finish in more than 25 months.

AMD shares

AMD

Its price rose 3.1% to $165.20 shortly after Thursday’s open, amid a broader rally in semiconductor names in the wake of the Taiwan Semiconductor Manufacturing Co.’s announcement.

TSM

Optimistic outlook. The stock’s current record close of $161.91 came on November 29, 2021.

TSMC’s revenue forecast for the current quarter was better than the middle of the forecast range, and executives made some optimistic long-term comments about AI chips.

See more: TSMC’s earnings offer optimism for the chip sector amid an upbeat outlook

TSMC, which makes chips for AMD and several other companies, expects AI chips to make up a high percentage of its revenue in 2027, according to Bernstein analyst Mark Lee, who noted that this beats the company’s previous forecast of lower revenue. -Adolescents’ contribution.

“In the semis, expect another wave of buying in AMD, NVDA, and MRVL on winning AI trades,” Jordan Klein, a desk analyst at Mizuho, ​​wrote in a Thursday morning note to clients.

Nvidia shares

NVDA

Shares of Marvell Technology Inc. rose. rose 1.9% toward a record close shortly after Thursday’s open

Morley

It advanced 4.2%, recording the highest level in 21 months. PHLX Semiconductor SOX Index

It rose 2.8%, and was approaching its record close on December 27 at 4,214.59.

Even before the TSMC report, AMD stock was feeling some love, as Cowen & Co analyst Matthew Ramsay turned bullish overnight, raising his price target to $185 from $130. The company’s MI300 segment, which focuses on AI applications, is “poised for material growth/upside,” according to Ramsay.

“We emerged from the company’s official MI300 launch in December with greater conviction that the MI300 portfolio should position the company for long-term growth in AI computing,” he wrote.

Ramsay noted that the MI300 is emerging as an “increasingly capable” alternative in the generative AI market. Nvidia is the market leader here by an overwhelming majority.

See also: If Nvidia looks more like Salesforce, the analyst says, it could free up billions more in cash

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