The Advanced Micro Devices (NASDAQ: AMD) stock is set to open even higher when markets open today. At the moment, shares of AMD are up about 3.3%, or $3.74.
That’s because of two key catalysts.
First, the trade war with China is finally cooling, at least for the next 90 days. That should remove a good deal of uncertainty from tech stocks, like AMD.
Second, the company just partnered with Saudi Arabia’s AI company, Humain, in a $10 billion deal.
As noted by Wedbush, “We believe the market opportunity in Saudi Arabia could over time add another $1 trillion to the broader global AI market in the coming years and this dynamic is not being priced into the market and tech names in our view”.
Analysts are Calling for AMD to Challenge $200
Analysts at DZ Bank just reiterated a buy rating on AMD with a $200 price target.
All thanks to blowout earnings. EPS of 96 cents beat by three cents. Revenue of $7.44 billion, up 36% year over, beat estimates by $320 million.
Data Center revenue jumped 57% year-over-year to $3.7 billion thanks to its MI300 AI accelerator and its Instinct and EPYC processors.
Revenue from the Client and Gaming segment, which houses AMD’s PC business, was up 28% year-over-year to $2.8 billion. Client revenue was $2.3B, up 68% year-over-year, while gaming revenue tumbled 30% year-over-year to $647 million.
Analysts expected EPS of 94 cents on revenues of $7.12 billion.
Analysts at Bank of America just raised its price target by $10 to $130 a share. All thanks to AMD’s latest deal with Saudi Arabia. “Bank of America predicts these projects to cost between $3 billion to $5 billion annually, which equates to a range of $15 billion to $20 billion across multiple years”.
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