UPDATE: Jefferies Upgrades Advanced Micro Devices to Buy

Jefferies raises its rating on Advanced Micro Devices AMD to Buy from Hold and increases its price target $3.50 to $10.50 on one of the best risk/reward ratios in the semiconductor sector. Jwfferies says, ". On the risk-side, AMD is trading near its '08 EV/S, when its interest coverage broke 1.0 and net debt was ~$4 billion. On the reward side, AMD's APU delivers a unique MPU + high-end graphics product to the low end and mainstream mobile markets, driving share gains in both segments. We think share gains continue and improving manufacturing yields could translate to upside surprises." AMD closed at $7.76 a share yesterday.