What a whirlwind week it has been for AMD. Not solely has it needed to compete with the discharge of the Nvidia RTX 40-series Tremendous playing cards and the aggressive pricing, however it additionally revealed a model new GPU and a brand new vary of gaming CPUs. Now, AMD is ready to interrupt its 52-week inventory worth document, however it has nothing to do with gaming.
Whereas AMD could be recognized for releasing a few of the best graphics cards, alongside a few of the best gaming CPUs, neither performed a task within the current spike in inventory worth. As an alternative, we have now one other state of affairs just like the one Nvidia discovered itself in final yr, the place this newfound momentum is all all the way down to AI.
The present 52-week inventory value document for AMD is $164.46, however early on Thursday, January 18, it sits at $163.22, which means a brand new document is on the horizon. It seems to be a matter of when relatively than if, particularly when the value not too long ago grew as excessive as $167.72. Extra record-breaking numbers could possibly be on the best way, given the brand new consideration that AMD is getting, and unsurprisingly, it has loads to do with Nvidia.
Coming off the again of a powerful 2023, Nvidia began to really feel extra like an AI enterprise than a graphics firm as soon as its earnings have been reported. Whereas the identical can’t be mentioned for AMD simply but, the present progress development is predicated on Barclays calling out AMD’s progress potential to traders.
One analyst not too long ago upped their initial $170 price target to $190 for AMD, citing AI developments because the driving issue. Whereas the on a regular basis shopper may not really feel the good thing about AMD’s AI developments, it’s clear that the market is eager to see what occurs within the coming weeks and months.
Nvidia can also be rising alongside AMD, however its 3% good points are overshadowed by AMD’s present 8% march. Avid gamers needn’t despair, as a result of whereas AI often is the motive cited for progress, this implies little or no for AMD’s normal semiconductor enterprise.
Identical to with the panic that surrounded Nvidia’s earnings, there isn’t a danger of both enterprise forsaking graphics for AI, however they may as a substitute look to maximise each markets, with AI being the one with the upper monetary ceiling in 2024.
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