Advanced Micro Devices (AMD) has seen a significant increase in its Fair Value Estimate, now at $239 per share, up from $214. This surge in optimism is driven by recent AI infrastructure contracts, particularly a promising partnership with OpenAI. Analysts, including Melius Research and Jefferies, have raised price targets to $300, reflecting the belief in AMD’s potential for substantial growth following its multi-year deal with OpenAI. Wolfe Research upgraded AMD to “Outperform,” forecasting over $10 in earnings per share due to expected cloud and server business gains. However, a few analysts remain cautious, expressing concerns about the sustainability of AMD’s growth and operating margins. The current consensus highlights AMD’s strong prospects in the AI sector, although execution and valuation remain critical factors. As AMD continues to strengthen its position against competitors like Nvidia, investors should stay informed on both the bullish and bearish sentiments affecting its trajectory.
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