Advanced Micro Devices (AMD 4.49%) stock recorded another day of strong gains Thursday. Amid a 2% jump for the S&P 500 and a 2.7% rally for the Nasdaq Composite, the semiconductor specialist’s share price closed out the day up 4.5%.
AMD stock moved higher today as investors bought back into the broader market on reports that the U.S. is making moves to lower trade war tensions with other economic leaders. The company’s share price also appears to have gotten a boost from analyst coverage that was published today.
AMD stock jumps in bullish day for the broader market
After big sell-offs earlier this month connected to the trade war, the broader market has seen rebound trading this week on hopes that the U.S. is moving closer to deals with large trade partners. Comments from President Donald Trump and other administration officials have helped bolster expectations that a trade deal with China could materialize in the not-too-distant future even though Chinese officials have recently denied that any serious talks have happened.
Meanwhile, some reports suggest that a bilateral trade agreement between the U.S. and India could be forthcoming soon. If so, the development could help strengthen the U.S.’s bargaining position, as India has been viewed as a manufacturing base that could help shift production away from China.
An investment firm just updated its price target on AMD
Before the market opened this morning, Susquehanna published new coverage on AMD stock. While the investment firm lowered its one-year price target on the chip specialist from $150 per share to $135 per share, it maintained a positive rating on the stock. As of this writing, Susquehanna’s new price target still implies upside of roughly 43% over the next year.
Analysts have been adjusting their price targets in response to broad-based market pressures recently, but some of the new tech-sector targets still suggest significant upside relative to current valuation levels. AMD is facing a weaker performance outlook due to new restrictions preventing its MI308 processor from being sold to China and broader macroeconomic pressures, but the passage of time could show that the stock was undervalued at current levels if the business delivers meaningful wins in the AI processor space.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy.
