A Wall Street analyst just called AMD Stock a Buy. is it

Advanced microdevices (AMD 0.01%) it has yet to see the kind of upside growth that chip stocks like Nvidia they do, but that doesn’t mean it hasn’t taken part in the AI ​​boom. Shares of the diversified chipmaker, which is best known for PC processors, are up 141% since the start of 2023.

In recent weeks, there has been a number of upbeat news for AMD, including a strong second quarter earnings report. Now, another Wall Street bull is lining up behind the stock.

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Edward Jones calls AMD a buy

Financial services firm Edward Jones issued a note initiating coverage of AMD with a buy rating and placed the stock on the company’s “focus list,” indicating elite status.

Edward Jones predicted that AMD will deliver “huge growth” in data center infrastructure as it kicks off a quarter in which sales doubled in the data center segment and demand remains exceptionally strong, as indicated by Nvidia’s results.

It also has an opportunity to sell new products in the embedded segment after the Xilinx acquisition in 2022.

Is AMD a buy at $155?

In addition to its strong earnings report at the end of July, AMD benefited from its rival’s collapse IntelNvidia’s delay in its new Blackwell platform and its recent $4.9 billion acquisition of ZT System, which makes both manufacturing and design systems for AI infrastructure.

AMD is moving quickly to capture the AI ​​opportunity in front of it and is gaining more support on Wall Street. It will take time for profits to build, but the stock has strong upside potential, especially given its momentum in the data center category. I think it’s a buy now.