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3 Reasons AMD Could Be the Hottest Stock of the Summer 
Though Wednesday was a flat day for the stock, Advanced Micro Devices Inc. (NASDAQ: AMD) looks likely to continue adding to a rally that has logged an impressive 65% since April. The strong uptrend has been characterized by a run of higher lows and higher highs, exactly what Wall Street wants to see after months of concerning underperformance. These are great signs for investors who might have been, rightly so, getting worried about the stock's multi-month downtrend and divergence from its better-performing peers. Remember, AMD last hit an all-time high back in March 2024, while NVIDIA Corp (NASDAQ: NVDA) hit a peak in January of this year and is currently sitting less than $10 per share away from another record. That divergence makes AMD an interesting comeback play. There are many reasons to like this semiconductor giant, but here are three. Why Elon Musk Just Invested $51 Million Into Brand New "Miracle Metal" Developed by MIT Scientists [See The Details Here] 1. Earnings Are Surging The foundation of AMD's current rally rests on impressive fundamental performance. May's earnings topped analyst expectations on both headline numbers, marking the company's second-highest revenue print ever and showcasing growth of 36% year over year. What really caught Wall Street's attention was management's better-than-expected forward guidance, something the market loves to see in this environment. And, as CEO Lisa Su pointed out, the company's "year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data center and AI momentum." The earnings beat wasn't just good; it was the kind of report that shifts sentiment and creates sustained buying pressure. For a stock that had been lagging behind its peers, this was exactly the catalyst needed to reignite investor enthusiasm. 2. Analysts Are Super-Bullish Perhaps unsurprisingly, given the strong fundamentals, the analyst community has also been overwhelmingly bullish on AMD, with updates from the past few days echoing similarly positive calls throughout May. Piper Sandler, for example, reiterated their Overweight rating on Monday while boosting their price target to $140. This move echoed similar upgrades from Stifel Nicolaus, Roth Capital, and Rosenblatt last week, with the latter slapping a fresh $200 price target on the stock. From Wednesday's close of $126, that Rosenblatt target implies an upside of around 60%. They and their peers have been particularly impressed by the company's prospects for a "snap back" in its GPU business, which could well be a fresh catalyst that will only add to the tailwind already driving the stock higher. This isn't just a war of words. This is a financial time bomb.
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