Advanced Micro Devices nasdaq Amd Stock Soars on the Back of Citi's Bullish Update

Advanced Micro Devices (NASDAQ: AMD) Stock Soars on the Back of Citi’s Bullish Update

Advanced Micro Devices (NASDAQ: AMD) stock surged 9% on Thursday following a bullish update from Citi, boosting investor sentiment.

Citi maintains its bullish outlook on semiconductor stocks and reiterates its optimism in a note released on Thursday. Analysts from the firm underscore robust demand trends, particularly highlighting the stability in PCs, handsets, and servers, collectively constituting 53% of the semiconductor total addressable market, alongside a resurgence in inventory replenishment.

Citi forecasts a minimum of 11% year-over-year growth in global semiconductor sales for 2024, with a particular emphasis on artificial intelligence driving this growth. The analysts express steadfast confidence in their long positions on NVIDIA (NASDAQ: NVDA), AMD (NASDAQ: AMD), and Broadcom (NASDAQ: AVGO).

Analysts told,

“The AI market continues to grow and our checks indicate TAM expansion with government agencies, universities, and large/medium businesses all buying AI chips. We continue to favor NVDA, AMD, and AVGO and expect the upcoming AVGO earnings to be another positive catalyst.”

However, Micron Technology (NASDAQ: MU) maintains its position as the bank’s premier choice, with analysts noting that the DRAM market upswing has commenced. Recent impressive performances and upward revisions from industry giants Samsung and Hynix underscore this sentiment.

Advanced Micro Devices (NASDAQ: AMD) Stock Reaction

AMD stock jumped 9.06% to close at $192.53 on Thursday. The traders had exchanged hands with 104,359,732 (104.35 million) shares compared to the average daily trading volume of 72.34 million.