AMD Surges as Citi Raises Price Target to $120 Before AI Event

• Advanced Micro Devices Inc. (AMD) shares increased 3% to $119.69, hitting an intraday high of $122.37, driven by anticipation for the company’s Advancing AI event on June 12.
• Citi raised AMD’s price target from $100 to $120, maintaining a Neutral rating, as the company prepares to unveil its MI355X AI chip and discuss the MI400, despite an $800 million charge tied to China export controls.
• Expected partnerships with major players like Amazon Web Services (AMZN) or OpenAI could strengthen AMD’s position in the AI chip market, amid growing demand for high-performance computing solutions.

Shares of Advanced Micro Devices Inc. (AMD) rose 3.01% to $119.69 in midday trading, peaking at an intraday high of $122.37, as investor enthusiasm builds for the company’s Advancing AI event on June 12. Citi (C) analyst Christopher Danely raised AMD’s price target from $100 to $120 while maintaining a ‘Neutral’ rating, citing the anticipated unveiling of the MI355X AI chip and updates on the forthcoming MI400, though tempered by an $800 million one-time charge related to China export controls.

The event is expected to showcase new partnerships, potentially with Amazon Web Services or OpenAI, strengthening AMD’s position in the booming AI chip market. This aligns with AMD’s strategic shift toward AI-driven computing, a sector experiencing robust demand across industries like cloud computing and machine learning. The $800 million charge reflects ongoing geopolitical tensions impacting semiconductor firms, particularly those with exposure to China’s market. Potential collaborations with major tech players could enhance AMD’s competitive edge against rivals in the AI accelerator space, where innovation and scalability are critical. Investors are closely watching the Advancing AI event for details on product performance and client commitments, which could drive further momentum for AMD’s stock despite regulatory challenges.

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