UPDATE: FBR Capital Markets Raises PT on Advanced Micro Devices Following Announcements at Interop NY

In a report published Monday, FBR Capital Markets analyst Christopher Rolland reiterated an Outperform rating on

, and raised the price target from $5.50 to $6.00. In the report, FBR Capital Markets noted, “Last week at Interop NY, Verizon announced two enterprise infrastructure-as-a-service offerings designed to challenge Amazon Web Services. Details surrounding the announcement lead us to believe that Verizon has chosen SeaMicro microservers to power these platforms and may provide AMD as much as ~$50M in incremental annual revenues. While we reported after our BIG ‘switches': little SERVERS conference that Verizon had deployed SeaMicro in 12 global datacenters, this announcement signifies a more meaningful commitment, well beyond a trial deployment. In addition to SeaMicro, AMD's results should be buoyed by the better-than-expected PC market exhibiting resiliency, as our ODM notebook tracker indicates units up 7% sequentially. Furthermore, China has relaxed its national gaming console ban, causing us to increase our 2015 Xbox One and PS4 estimates. Additionally, AMD may have a chance at providing parts for both the MS ‘Bestpad' and Sony ‘Vita TV.'” Advanced Micro Devices closed on Friday at $3.91.