Shares of Advanced Micro Devices, Inc. (NASDAQ: AMD) jumped over 5% on Tuesday, following a positive move by analyst Harsh Kumar at Piper Sandler. Kumar decided to maintain an Overweight rating on AMD and raised the price target from $110 to $150.
Kumar believes that AMD is currently undervalued compared to its peers, who are trading at approximately 65 times earnings. In light of this, the new price target reflects a multiple of around 38 times earnings, indicating potential growth. Despite previous downgrades, Kumar remains optimistic about AMD’s future prospects and considers the company well-positioned for further development.
On June 7th, AMD’s stock experienced a significant surge of 5.34%, closing at $124.23. Although the stock opened slightly lower than the previous day’s close, it steadily climbed throughout the day. The trading range for the shares varied between $117.74 and $124.42. Impressively, the trading volume reached 75,257,496 (75.25M) shares, surpassing the average volume of 67.94 million over the past three months. Currently, AMD boasts a market capitalization of $202.79 billion.