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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The user M_Kabesh holds no position in NasdaqGS:AMD. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.