Bank of America (NYSE:) analyst Vivek Arya has reiterated a Buy rating and a Top Compute Pick designation on AMD (AMD) stock as he sees an “idiosyncratic growth at compelling valuation.”

Additionally, an analyst believes that there are multiple catalysts in the future that could propel AMD stock to higher prices, including Computex Tradeshow Keynote (May 23rd) and Analyst day (June 9).

“In our view, AMD is uniquely in the early stages of share gains in a $135bn+ addressable market across some of the most attractive end-markets in semis across cloud, enterprise, gaming and embedded/IoT. AMD’s idiosyncratic combination of share gains, consistent management roadmap execution & Xilinx/Pensando synergies could drive 15-20% sales, 20-25% pf-EPS and EPS power of $8+ by CY24/25E, on our estimates,” Arya said in a client note.

Analyst claims that the market underestimates AMD’s growth potential and its margin potential.

Arya sees an excellent balance sheet, compelling valuation and more than 70% upside potential. This is in addition to his $160.00 target price for AMD stock.

On Friday, the AMD stock market closed at $93.50

By Senad Karaahmetovic