Northland Capital Markets analysts upgraded Advanced Micro Devices (NASDAQ:AMD) to Outperform with the price target of $150 per share.

“The only thing worse than being wrong is not admitting it, and we have been wrong on AMD shares,” they said in an upgrade note.

The analysts admit they are very late as AMD shares are trading almost 80% higher this year.

“While there is a risk, we are upgrading too late, we think AMD shares will get an AI multiple.”

Analysts highlight AMD’s ATI business, acquired in 2005, which has rivaled Nvidia’s (NASDAQ:NVDA) GPUs “for decades.”

“For no other reason than the world needs a second source to NVDA, we think AMD can reach a 20% market share in the AI GPU market over time,” they added.

“We expect a ramp of GPU revenue from the MI 300 and El Capitan supercomputer in 2H. AMD’s open-source software approach likely reduces NVDA software moat. Finally, AMD has IP for AI beyond GPUs.”

AMD stock is up a further 0.5% in pre-market Wednesday.