BofA Raises Coherent Price Target to $400; Forecasts $1.7 Trillion AI Data Center Spending

The stock has experienced a strong 21% rally in the last 24 hours, reaching a price of $401. Although the RSI at 71 is approaching overbought territory, the MACD line remaining above the signal line and showing positive divergence suggests that short-term momentum could continue. BofA's upward revision of its price target to $400 and its $1.7 trillion artificial intelligence data center forecast provide a positive catalyst for the stock. However, the price trading well above its 20- and 50-day moving averages also brings some risk of profit-taking in the near term. While the overall uptrend remains intact, cautious optimism prevails due to overbought signals.

The news presents a strong demand forecast for AI data center investments, which is positive for AI chip manufacturers like NVDA. Although the RSI is approaching overbought territory at 74, the MACD remaining above its signal line and the price trading above the 20- and 50-day moving averages indicate a robust uptrend. The 5.45% increase in the last 24 hours shows continued momentum. However, the elevated RSI level also brings a short-term correction risk. Therefore, while the upside expectation is high, caution is warranted due to the overbought signal.

AMD shares have risen 2.6% in the last 24 hours, with the RSI at 57.8, indicating neutral territory. Although the MACD remains below the signal line, the SMA20 crossing above the SMA50 (golden cross) provides a medium-term bullish signal. BofA's upward revision of Coherent's price target and the $1.7 trillion AI data center forecast could positively impact the semiconductor sector, including AMD. However, the price trading just below the SMA20 and the weak MACD suggest caution in the short term. Overall, limited upside potential is expected in the near term.

AVGO shares closed 1.7% lower, trading at $414.27. The RSI has fallen to 42.8, below the neutral zone, while the MACD remains negative below the signal line. The price has dropped below both the 20-day and 50-day moving averages ($421.87 and $421.67, respectively), indicating short-term weakness. Although BofA raised its price target for Coherent to $400 and a $1.7 trillion AI data center forecast reflects positively on the sector, AVGO's technical indicators suggest that selling pressure may persist. Therefore, a continued downward movement in the short term can be expected.