AMD and Nvidia Stocks Soar on Positive Analyst Reports

Analysts predict a surge in demand for AMD's AI chips as the company's stock hits a 52-week high.

Shares of Advanced Micro Devices (AMD) and Nvidia rose significantly due to positive analyst reports, with AMD stock hitting a 52-week high and Nvidia claiming a record high in intraday trading.
Analysts from Barclays, KeyBanc Capital Markets, and Susquehanna Financial Group increased their price-targets for AMD, citing strong performance in graphics processing units and a boost to business as the AI trend enters its 'second wave'.
AMD's MI300X line of accelerator chips was highlighted as a key product benefiting from the increased interest in AI, with KeyBank predicting a 'meaningful inflection in demand' for the chip this year.
Despite some cautionary notes about weaker segments of the semiconductor market, analysts forecast that AMD could earn enough this year to drive its price-to-earnings ratio down to just 39.
AMD's new Ryzen 7000 series of chips, which bring AI to personal computers, already power 50 notebook computer designs, with more expected due to a collaboration with Microsoft.