A two-month bounce in AMD stocks continues. Many investment houses supposed that the second most important AI chip name after NVIDIA has been over-corrected, and so it proved. Price dips below $122 in early August were followed by a strong recovery to the area of post-covid highs around $165. Yet, my feeling is this is far from the end of AMD's bullish journey this year. The firm's long-awaited “Advancing AI” event is scheduled on October 10. It may prompt the Wall Street crowd to increase its positioning, first on positive expectations, and later on robust presentations of the firm. As a matter of pure facts, the same kind of public event organised by AMD on December 6 led to its stock price gains of almost 20% within one month and as much as 80% within three months, when it briefly renewed historical peaks at $227.30. NVIDIA's clear dominance over 85%+ in AI accelerators' market share is undisputable, yet AMD is occupying up to 7% in this hyping segment and at least 20% share in consumer and game graphic processing units. The company's roadmap updates in AI and cloud developments would be in focus in the course of the event. Any hints on useful know-hows and possible increase of sales in these two markets could become a great asset for further AMD rallying. The analyst consensus here is just above $5 billion in 2024, but with a potential to double to nearly $10 billion in 2025, and to $12.8 billion being on the table for 2026. The Bank of America estimates that AMD would be able to secure over 10% of the AI market share within the next two years. The forecast is based on prospects in open-source software, networking (infinity fabric), added by recent corporate acquisitions like ZT Systems and Silo AI. AMD’s MI300, its pivotal AI product, may bring $5 billion in the year, Barclays said in mid-summer, putting its price target for AMD to $180. Barclays noted that MI300 sales already jumped from initial $2 billion to over $4 billion for 2024, with $9 billion projections for 2025.

Globally stagnating demand on personal computers and, therefore, on central processing units (CPUs) may slow the speed of the non-AI related part of AMD business. However, I personally would bet on a re-test of $195 per share at least. I told you in April that AMD was ready for a recovery from below $160 per share that time to above $200 once again, and it soared to above $187 in just three months. The next stage of winning back for AMD may have a higher potential if its AI "Oktoberfest" would be successful. Broadcom (AVGO) is trying to compete with AMD in cheaper production of some competitive products. This IT giant is also one of the major favourites in my stock portfolio.