Key Factors
Yesterday’s AI occasion is about to gasoline the subsequent stage of the rally. 
Bullish feedback from analysts ought to see shares come near 2021’s all-time excessive.
The technical setup stays engaging, and shares aren’t but in overbought territory. 
5 shares we like higher than Microsoft
Having cooled significantly after a powerful first half of the yr, shares of Superior Micro Gadgets Inc NASDAQ: AMD are as soon as once more doing what they love greatest: rallying. The inventory is up about 40% because the final week of October and has all however undone the current slide that had taken the shine off what was in any other case shaping as much as be a stellar yr. 
Like many of the different names within the business, AMD has been on the receiving finish of each hype and issues across the broader semiconductor business and the now intertwined AI aspect of it. This may be each good and dangerous for traders, relying in your funding time horizon. For instance, the long-term believers within the AI business and the bullish publicity AMD has to will probably be glad to snap up shares throughout any dip. However the extra short-term centered traders are on the mercy of any blip within the firm’s, or the business’s, progress potential.
Nevertheless, with shares after popping 10% throughout Thursday’s session, they’re on monitor to shut out their greatest week shortly, and issues are trying good. Listed below are three causes to think about getting concerned earlier than the tip of the yr. 
AI tailwinds
The primary of those is AI and AMD’s favorable publicity to the seemingly endless hype round its potential. Yesterday noticed the corporate host its long-awaited Advancing AI occasion, which centered on AI and the launch of its new MI300 information heart GPU. Contemplating the shopping for momentum in shares within the weeks main as much as the occasion, it did not disappoint. 
The preliminary response was all very optimistic, with the brand new information heart GPU seen as a pivotal step in AMD’s means to extra carefully compete towards the likes of NVIDIA Company NASDAQ: NVDA, who has been by far the strongest performer of all AI-related shares this yr. However yesterday’s occasion confirmed that AMD is now simply as effectively positioned to capitalize on the business’s ongoing progress. Past highlighting AMD’s strengthening place, different key takeaways had been the strategic buyer partnerships it is making and the depth of its roadmap. Regardless of the challenges of competing with an organization of NVIDIA’s measurement, AMD’s open-source strategy is anticipated to be a key differentiator. Working example, already there are experiences that each Meta Platforms Inc NASDAQ: META and Microsoft Company NASDAQ: MSFT have mentioned they’re going to be open to purchasing AMD’s new AI chips as an alternative choice to NVIDIA’s. 
Bullish feedback
Within the wake of the occasion, there was a run of bullish feedback and upgrades from some heavyweight analysts. Citi, for instance took the chance to reiterate its Purchase score on the inventory and its $136 worth goal. Had been shares to hit this within the coming weeks, it might put them above June’s excessive and ensure that the subsequent stage of the rally had began.
Raymond James, like Citi, reiterated their score of a Sturdy Purchase however boosted their worth goal as much as $140. They had been impressed by the response from Meta and noticed this as a key step in AMD’s pursuit of NVIDIA’s market share.  
Remarkably, having fallen virtually 70% from their 2021 excessive, a transfer as much as $140 would put AMD shares again inside 15% of a brand new file. With the present tailwinds and bullish feedback popping out of their favor, we’re inclined to assume that is the almost certainly state of affairs for the inventory heading into 2024. 
Technically robust 
This ties in with the ultimate cause to be bullishly weighing up an entry, and that is the technical setup. With the inventory having bounced arduous from a double low across the $95 mark, there is not any doubt that we’re within the midst of a recent rally kicking off, with a ton of momentum possible taking it to recent highs within the coming weeks. 
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