"Analysts Divided Over AMD's AI Potential Amid Stock Surge"

AMD's stock has surged nearly 130% in 2023 due to high demand for its AI-oriented GPUs, leading to uncertainty among analysts about its future trajectory. Northland Capital Markets analyst Gus Richard downgraded the stock to a "heck if we know" rating, citing irrational exuberance and distorted demand signals in the AI chip market. He predicts total AI chip revenue of $125 billion in 2027, but believes that investor expectations are overly optimistic. Despite the surge, AMD shares fell about 3.5% to $168.17 as of Monday afternoon.