AMD Stock Surges on AI Growth, But Analyst Targets Suggest Potential Downside
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AMD stock has seen significant gains recently due to its growing AI and generative AI offerings.
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However, AMD's current valuation appears expensive compared to industry medians and historical averages.
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Wall Street analysts are bullish on AMD due to substantial growth opportunities in AI, with a $400B TAM expected by 2027.
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Goldman Sachs recently raised AMD's price target on expectations of strong adoption of its new data center GPUs.
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Despite bullish analyst ratings, the average price target implies an 11% downside for AMD stock from current levels.