Shares of Advanced Micro Devices (NASDAQ: AMD) are well off their previous high of $227, but most Wall Street analysts remain optimistic about the stock's upside potential.

One TD Cowen analyst has a buy rating on AMD shares and recently raised the investment firm's price target from $185 to $200. This implies an upside of 29% within the next year from the current stock price. Here's what's baked into TD Cohen's assumptions.

AMD stock soared out of the gate this year following upbeat commentary from management on the earnings call in January. Executives mentioned that the early customer response for the new MI300 chip was "overwhelmingly positive." Microsoft is using the MI300X chip to more efficiently serve its Azure cloud service and power OpenAI's GPT-4 large language model.

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Source Fool.com