- Goldman Sachs raised AMD’s 12-month target price from $450 to $640 with a Buy rating
- AMD shares surged up to 10%, trading at $561.49 by midday, after the analyst upgrade
- Semiconductor stocks including Micron, Intel, Nvidia, and Qualcomm also saw notable gains
Advanced Micro Devices Inc. soared as high as 10% to a high of $572.50 on Monday after receiving a sharp target price hike from Goldman Sachs analyst James Schneider.
The wall street expert has boosted his 12-month outlook for the chip giant from $450 to a whopping $640, according to a note by the brokerage. MS has also retained its ‘Buy' rating for the stock. As of 12:32 p.m., the shares traded 8.6% higher at $561.49.
Semiconductor companies have bounced back from their previous session's rout with Micron rising as high as 4% to $1,019 and intel climbing 5% to $127.30. Shares of Jensen Huang-led Nvidia Corp. also rose as high as over 1% to $197.55.
Other storage and memory manufacturers like Sandisk Corp. and Qualcomm Inc. also surged 3% and 6.4% to $1,837.77 and $188.67.
Broadcom Inc.'s scrip surged 5% to a high of $383.16 after it extended a long-running supply agreement covering custom semiconductor development and production with Apple Inc.
The company will continue developing custom application-specific integrated circuit (ASIC) chips for Apple, which will be used across “multiple generations of Apple products", as per an official filing by Broadcom.
This is a sharp recovery from Thursday's deep decline when AI-linked giants faced selloff at the hands of investors who felt jitters regarding high valuations and decided to book profits.
The decline followed reports that Meta Platforms may rent out excess AI computing capacity, fuelling concerns that the rapid build-out of AI infrastructure could eventually create oversupply. The development had prompted investors to reassess rich valuations across semiconductor stocks. Meta's stock extended gains and rose over 2% to $598.20 on July 6.
"Investor interest remains strong, but the easy part of the rally is behind us. From here, the market will differentiate much more sharply between companies with pricing power, balance-sheet strength, and confirmed customer demand, and those merely attached to the AI narrative," said Harshal Dasani, Business Head at INVAsset PMS.
ALSO READ: Micron Shares Zoom On Long-Term Memory Supply Pact With Ford
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