Top Investor Who Predicted AMD at $100 Warns: ‘Be More Careful’
Advanced Micro Devices (NASDAQ:AMD) has recently experienced a remarkable surge in its stock value, doubling its share price in the last six months. This growth comes as the company begins to capitalize on the booming artificial intelligence (AI) market, despite still trailing Nvidia in size and market share.
Recent Developments at AMD
During AMD’s recent Investor Day, CEO Dr. Lisa Su highlighted the company’s ambitious plans for 2025, aiming for $35 billion in revenue and seeking to capture a double-digit share of data-center spending. AMD’s strategy anticipates a compound annual growth rate (CAGR) of 35% in the next few years. The total addressable market (TAM) for AMD is projected to grow from $500 billion in 2028 to $1 trillion by 2030, indicating significant long-term growth potential.
Investor Insights
JR Research, a top investor and analyst, initially recognized AMD’s potential when it was trading at $100. Now that the stock is approaching $250, this investor has reassessed the situation, urging caution among potential investors.
- JR Research emphasizes patience in the current market, as optimistic sentiments may need time to stabilize.
- Recent supply chain issues, like those faced by CoreWeave, highlight execution risks within the tech sector.
- AMD is currently trading at a forward EBITDA multiple over 43x, significantly outpacing Nvidia’s 26x, suggesting that investors may have already priced in high expectations.
“If I’m you, I will definitely be more careful,” JR stated, placing a Hold rating on AMD shares, which indicates a neutral stance.
Market Sentiment and Analysis
Despite JR Research’s cautious outlook, Wall Street analysts have a more optimistic view on AMD. Currently, the stock holds a Moderate Buy consensus rating, backed by 27 Buy recommendations and 10 Holds. The 12-month average price target for AMD stands at $281.78, representing a potential upside of about 14% from its present valuation.
Investors are advised to conduct thorough research and consider expert opinions before making any investment decisions related to AMD.
