Advanced Micro Devices (AMD), currently trading at $115.95 per share, is positioned for significant growth due to its focus on high-performance computing, AI, and data center markets. Despite a revenue dip to $22.68 billion in 2023, AMD has increased its AI chip revenue guidance to over $5 billion for 2024, indicating a strategic push into this booming sector. However, it faces intense competition from Nvidia, which leads the AI and data center markets. Under CEO Lisa Su's leadership, AMD has transformed into a major semiconductor player, surpassing Intel in market value. Analysts maintain a "Buy" rating on the stock, with a 12-month target price of $175.00, driven by expected gains in AI, graphics, and server chip sales. If AMD successfully capitalizes on these opportunities, the stock could rise to $180–$200 by 2026. Conversely, failure to capture market share in AI could limit price growth to $130–$150.
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