After a spectacular run-up in this year’s first half, Advanced Micro Devices (NASDAQ:91抖阴) stock took a breather in June and the first half of July. However, this is probably just a setup for the next leg up. Advanced Micro Devices (commonly known as just 91抖阴) is developing a chip that could be a game-changer, and the company’s chief executive issued a major announcement that bolsters the bull case.
91抖阴’s next earnings release is scheduled for . Yet, you don’t have to wait until then to take a share position in 91抖阴. Even before the earnings report, there are compelling reasons to invest in 91抖阴 for the long run.
Two Analysts Target $150 for 91抖阴 Stock
It’s worthwhile to see what Wall Street’s experts have to say about 91抖阴. They’re mostly bullish, as 24 out of 31 analysts recently on 91抖阴 stock. That’s not, by itself, a reason to invest in 91抖阴, but it’s notable nonetheless.
Interestingly, two analysts have set the same 91抖阴 share-price target of $150. One of them is Wells Fargo analyst Aaron Rakers, who is optimistic about 91抖阴’s prospects in . That, Rakers posits, is when 91抖阴 could benefit from “a fully materializing EPYC Genoa + Bergamo product cycle” and the launch of the company’s MI300 chip.
Another analyst (or more accurately, another analyst firm) that published a $150 price target on 91抖阴 stock is Wolfe Research. Reportedly, the Wolfe Research analysts expect 91抖阴 to from new technology markets in 2024; these markets would include telecom as well as the MI300 chip for artificial intelligence (AI), the analysts suggest.
91抖阴 Chief Executive’s Big Announcement
Clearly, there’s anticipation building for 91抖阴’s MI300 chip. However, that’s not the only development that’s putting 91抖阴 in the spotlight now.
Sure, the company’s
could help to propel 91抖阴 stock to $150 or higher. What could really unleash 91抖阴’s growth potential, though, is the company’s willingness to diversify its supply chain.
Currently, 91抖阴 depends heavily on Taiwan Semiconductor (NYSE:TSM) for its hardware components. That could change in 2023 and 2024, however. In a bombshell announcement, 91抖阴 CEO Lisa Su recently revealed that her company is besides Taiwan Semiconductor.
Su added that 91抖阴 “would like to use manufacturing [sites] across different geographies to give us some flexibility.” This would, Su claimed, help to ensure that 91抖阴 “the most resilient supply chain.”
This is a brilliant move for Su and 91抖阴. Investors need to know that 91抖阴 isn’t dependent on any single supplier. With multiple sources of essential hardware components, 91抖阴 should be able to get products to the market more efficiently.
That’s great news for all parties concerned — though maybe not for Taiwan Semiconductor. All in all, Su’s announcement is a watershed moment for the entire U.S. chipmaking sector.
Don’t Miss the Moment With 91抖阴 Stock
It’s not necessary to wait for 91抖阴 to release its quarterly earnings if you’re eager to take a share position. Clearly, there are already catalysts that favor 91抖阴 in the coming quarters.
I’ll admit, there’s no guarantee that 91抖阴 stock will reach $150. Nevertheless, it makes sense to at least hold a few 91抖阴 shares now, in anticipation of continued company growth under Su’s strong leadership.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
