Advanced Micro Devices, Inc. (AMD) is still attracting buyers despite its sock surge to the highest level in more than 12 years.
AMD stock reached $30.10 per share at the end of the trading day on Tuesday, marking the first time the stock has closed north of $30 per share since June 2, 2006. The company nearly tripled its share price since the start of the year.
The rise to this historic level at close is not scaring off traders and analysts, as many feel there is room to grow.
"Fund managers that want exposure to semiconductors have to decide if they want to own the leaders or the laggards in the group," Real Money contributor James "Rev Shark" said in his advice on trading the stock today. "Most will prefer the leaders and that is what is going to help AMD to continue to trend higher."
He concluded that the stock still provides buying opportunities for these momentum traders.
Barchetta Capital Management Managing Director and Real Money contributor Ed Ponsi also pointed to technical indicators as supportive of a bull case.
Pointing to indications from the MACD oscillator, which has indicated a long term bull trend, he suggested that the stock should face little resistance to its run until it reaches above $40 per share. A run to Ponsi's resistance point would mean a nearly 30% rise from even today's highs.
"AMD longs have momentum on their side," he explained. "That, and a lack of any significant nearby obstacles, means that the path of least resistance for this stock is higher."
Their bullish case has also been bolstered by a number of analysts raising their price targets on the company's sustained momentum and key upcoming factors that could lead the stock higher.
Notable among the recent upgrades was a significant price target increase from Rosenblatt Securities senior research analyst Hans Mosesmann, who raised his price target from $30 to $40.
"We note several strategic and likely sustainable vectors for AMD," he wrote, undeterred by the company's price run to its highest levels in years.
He maintains a buy rating on the stock and expressed confidence that the company can continue to grow and gobble up market share from its main competitor in CPU, Intel.
Mosesmann's upgrade follows shortly after Jefferies Financial (JEF) analyst Mark Lipacis, who raised his own target from $22 to $30 and Well Fargo analyst Aaron Raker upping his target from $20 to $34 per share.
To be sure, the stock is attracting a great deal of praise from analysts and investors, which has helped propel shares into overbought territory.
According to the Relative Strength Index, shares are trending above the overbought band of 70 heading toward close, clocking in at 81.9 on Tuesday's close.
Yet, much the same as with tariff concerns for the chip-maker, analysts and investors are finding AMD to be a compelling buying opportunity not held down by these relatively minor concerns.