Wall Street's Highest Advanced Micro Devices Stock Price Target

Earlier this week, William O'Neil added AMD to its U.S. Focus list

Aug 23, 2018 at 9:41 AM
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Analysts have been blasting Advanced Micro Devices, Inc. (NASDAQ:AMD) with bullish notes recently, as the chip stock rallies into decade-high territory. Following this morning's latest batch of upbeat brokerage attention, AMD stock is up 4% out of the gate to trade at $21.73 -- its highest point since December 2006.

Specifically, Rosenblatt raised its AMD price target to $30 from $27, the highest on Wall Street. This represents expected upside of 43.5% to last night's close at $20.90, and sits in territory not charted in 12 years.

This just echoes a positive note from William O'Neil earlier this week, which added AMD stock to its U.S. Focus list, saying it believes the "shares are buyable again as they break into new highs on strong volume."

Today's price action is just more of the same from a stock that has already doubled in value year-to-date. What's more, Advanced Micro Devices shares just flashed a buy signal that's had a 75% win rate in the last 10 years.

From a contrarian perspective, there's plenty of fuel to keep AMD's fire burning, with 47% of analysts still maintaining a "hold" or worse rating and one-fifth of the stock's float sold short. And options traders have been quick to jump on the bullish bandwagon.

At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), AMD stock's 10-day call/put volume ratio of 2.96 ranks in the 72nd annual percentile, meaning calls have been bought to open over puts at a quicker-than-usual clip. The weekly 8/24 20.50-strike call has seen one of the biggest increases in open interest over this time frame, and data from Trade-Alert points to significant buy-to-open activity.

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