$Advanced Micro Devices(AMD.US)$ It’s clear that there are secular gro...

$Advanced Micro Devices(AMD.US)$ It’s clear that there are secular growth drivers behind companies like AMD and Nvidia, as demand continues to churn higher. It’s been clear for a while now that analysts have been behind the curve on these stocks.

That’s clear through the consensus earnings and revenue estimates – which have been way behind the curve over the past 18 months. I now feel that way about the price targets and upgrades.

Just like Micron, we saw a wave of higher price targets for AMD when the company reported earnings in late October.

We saw multiple price targets of $140 to $150 the day after AMD’s report. They were notable after a big breakout and as shares were trading in the $120s. However, there were several price targets between $175 and $180, which implies 16% upside from current levels.

Like consensus estimates, I believe most price targets will be behind the curve and need to be raised again in the coming months and quarters.