Advanced Micro Devices (AMD) soared on Tuesday after analysts lifted estimates and insiders claimed that the Zen 5 CPUs may launch later this year.
AMD’s stock surged 8.31% to $158.74 per share on January 16, its highest close since 2021. Its shares also gained 0.73% after-hours, with analysts expecting a 1.28% gain to $161.71 apiece in the coming market session.
The semiconductor firm’s stock was only 2.00% short of its all-time high closing price of $161.91 on November 29, 2021. With the upcoming release of its expanded enterprise solutions, AMD may break the record in the coming months.
Barclays reversed its 2024 year-end share price target for AMD from a fall of $120.00 to a rise of $200.00 apiece. The British universal bank named the California-based company a beneficiary of the second wave of artificial intelligence (AI) interest.
KeyBank set a $195.00 price target for AMD due to a meaningful demand inflection for the company’s new AI chip. It also forecasts AMD’s graphics processing unit (GPU) sales to reach $8.00 billion this year.
In addition, Susquehanna Research reported that GPUs will likely sell around the manufacturer’s suggested retail price (MSRP) throughout 2024. That indicates sufficient demand for advanced GPUs for AI systems like generative AI (GenAI) solutions.
Investors anticipate AMD will gain ground in its challenge to Nvidia’s advanced AI chip market dominance.
Zen 5 CPUs to Showcase New AMD Architecture
Last week, AMD introduced its 8000G desktop APUS and announced the expansion of its 7000X3D desktop and Ryzen 7000 mobile CPUs.
However, attendees of the chipmaker’s CES 2024 exhibit sought further information, particularly about the products that utilize Zen 5 architecture.
Insiders said the company has begun mass production of the first CPU series bearing the next-generation architecture. Industry experts predict the new lineup will come under the Ryzen 9000 branding with a July 2024 release date.
According to leaked benchmark scores, the firm’s first Zen 5 CPU will allegedly have one of the largest gen-to-gen boosts in AMD history. With a 49,000 theoretical Cinebench R23 test score, the new 16-core flagship will be 28.95% superior to the Ryzen 9 7950X’s 38,000 points.
