On Thursday, Mizuho maintained a positive outlook on Advanced Micro Devices, Inc. (NASDAQ:AMD), raising the stock's price target to $235 from the previous $200. The firm sustained its Buy rating on the semiconductor company's shares.
The adjustment reflects the firm's confidence in AMD's positioning within the artificial intelligence (AI) graphics processing unit (GPU) market. Despite AMD being the second largest player and trailing behind NVIDIA (NASDAQ:NVDA), the firm anticipates AMD's AI revenue could exceed current estimates, potentially reaching approximately $4-5 billion for the year 2024.
Mizuho's analysis suggests a significant growth trajectory for AMD's AI business, with projections indicating a potential revenue ramp to roughly $18 billion by the year 2027. This optimistic forecast underscores the expected expansion of the AI GPU market and AMD's role within it.
The semiconductor industry has been witnessing a surge in demand for AI capabilities, and AMD's advancements in this sector seem to be capturing the attention of analysts and investors alike. The raised price target is a testament to the expected increase in AMD's market share and financial performance in the coming years.
Investors and market watchers will likely monitor AMD's progress in the AI GPU space closely, as it contends with its competitors and aims to capitalize on the growing demand for AI technologies. The company's ability to meet and surpass revenue expectations could be a pivotal factor in its stock performance.
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