Key Takeaways
- Advanced Micro Devices shares jumped nearly 10% to lead S&P 500 gainers Monday as Piper Sandler raised their price target for the chipmaker’s stock.
- The move comes after AMD’s “Advancing AI” event last week, which saw the reveal of next-generation server rack architecture.
- Bank of America analysts expect a partnership to be announced between AMD and Amazon Web Services.
Advanced Micro Devices (AMD) shares popped nearly 10% to lead S&P 500 gainers Monday as Piper Sandler analysts raised their price target for the stock coming out of the chipmaker’s “Advancing AI” event.
Piper raised its target to $140 from $125 and maintained an “overweight” rating for AMD stock. Shares of AMD were at about $127 in recent trading, making Piper’s target a roughly 10% premium.
The analysts came away “enthused” by the firm’s newly unveiled Helios server rack architecture, which it called “pivotal” for the growth of AMD Instinct GPUs. Helios will combine next-generation AMD MI400 chips into one larger system, the company said, and is expected in 2026.
AMD highlighted its partnerships with ChatGPT maker OpenAI, Meta Platforms (META), Oracle (ORCL), Microsoft (MSFT), and others at the event. Bank of America analysts believe there’s another high-profile partner announcement to come: Amazon (AMZN).
Amazon Web Services (AWS) was “a key sponsor for the event,” BofA said. However, AWS typically uses its own events to announce new engagements, making a future reveal likely, the bank added.
BofA maintained a “buy” rating and price target of $130 following the event. For comparison, the analyst consensus price target from Visible Alpha is about $124.
:max_bytes(150000):strip_icc()/GettyImages-21963552431-53e7fe3152a044c5b82551d3457c14ea.jpg?ssl=1&description=AMD+Stock+Soars+as+Piper+Sandler+Raises+Price+Target+After+%E2%80%98Advancing+AI%E2%80%99+Event){kind=link}