The growing adoption of artificial intelligence (AI) has created a boon for a number of companies in the semiconductor space, and Advanced Micro Devices (NASDAQ: AMD) has been among the beneficiaries of that trend. The company's processors have seen strong demand driven by these secular tailwinds.

Despite spectacular gains of 78% over the past year, one Wall Street analyst believes AMD has further to run.

Evercore ISI analyst Mark Lipacis initiated coverage on AMD stock with an outperform (buy) rating while assigning a $200 price target on the stock. That represents potential upside for investors of 25% compared to the stock's closing price on Monday. The analyst suggested AMD will be the beneficiary of "the tectonic shift in computing to parallel processing era," as it takes a growing market share of the central processing units (CPUs) used in data centers.

Continue reading

Source Fool.com