Advanced Micro Devices Inc (NASDAQ:AMD) stock is extending its record run today, last seen up 2.7% at $648.85 after Citigroup raised its price target to $800 from $575. The firm said AMD should be a primary beneficiary of a "CPU renaissance," citing the release of Meta Muse and the firm's subsequent increase to its CPU total addressable market estimates. The analyst in coverage also pointed to Meta Platforms (META) as one of AMD's largest server customers.
AMD hit an all-time peak of $649.88 earlier, extending a massive run that has the shares up roughly 200% year to date. The equity recently broke out above the $600 level, which appears to be holding as support now.
Of the 48 analysts in coverage, 40 carry a "buy" or better rating, while eight say "hold." Meanwhile, the 12-month consensus price target of $620.89 sits at a 3.8% discount to current levels, leaving the door open for additional price-target hikes.
Despite the stock's outperformance, options traders have been more bearish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), AMD's 10-day put/call volume ratio of 0.74 ranks in the 84th percentile of its annual range. An unwinding of this pessimism could provide additional tailwinds.
It's also worth noting that AMD's 14-day Relative Strength Index (RSI) sits at 71.7, firmly in "overbought" territory. While this underscores the equity's recent momentum, it also suggests the shares could be due for a short-term breather.
