Market Overview

AMD's Product Road Map Remains 'On Track,' Analyst Believes Stock Will Outperform

Share:
AMD's Product Road Map Remains 'On Track,' Analyst Believes Stock Will Outperform
Related AMD
AMD CEO Puts Rumors To Rest: 'We're Not Looking At Enabling A Competitor To Compete With Our Products'
Breaking Down The Reasons An Advanced Micro Devices Deal With Intel Not Likely To Happen
AMD To Highlight New Products and PC Designs During Computex —…–7 Press Conference and Webcast (GuruFocus)

Advanced Micro Devices, Inc. (NASDAQ: AMD) is a classic example of "the market giveth, the market taketh away." After soaring more than 10 percent Tuesday, the stock gave up almost of all its gains Wednesday as the company's investor day presentation failed to sustain the buying momentum.

AMD hosted its analyst day presentation, which prompted some bullish analysts to revise their ratings lower. BMO Capital Markets' Ambrish Srivastava isn't among the crowd as the analyst maintained an Outperform rating on AMD's stock with an unchanged $15 price target.

Road Map And Financial Clarity

Heading into the presentation, Srivastava said in a report on Monday that expectations were high and his view of the stock could move negative if the presentation fell short of expectations. However, the analyst stated AMD offered "more details than we are accustomed to" in terms of both the product road map and financial outlook.

Srivastava did acknowledge that some among the Street are disappointed with AMD's longer-term earnings per share guidance of $0.75. He believes the outlook is one management felt was "reasonable" at this stage in its turnaround.

The analyst also believes the likelihood of AMD implementing additional intellectual property licensing opportunities is "high" and any such deal isn't factored into the long-term earnings per share target.

Finally, Srivastava noted that artificial intelligence and machine learning technologies represents a large opportunity for AMD and the company's total addressable market estimate of $5 billion is in-line with what he believes it to be.

Bottom line, AMD's product road map remains "on track" and the company's management did a good job in communicating its upcoming products which supports the bullish case.

See Also:

Marc Chaikin's Bullish Thesis On 3 Small-Cap Tech Stocks

Intel Has Reportedly Ditched Nvidia For Advanced Micro Devices

Image Credit: Advanced Micro Devices, Inc. (AMD) [Attribution], via Wikimedia Commons

Latest Ratings for AMD

DateFirmActionFromTo
May 2017Loop CapitalDowngradesBuyHold
May 2017MacquarieDowngradesNeutralUnderperform
Apr 2017Goldman SachsInitiates Coverage OnSell

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

Posted-In: Ambrish Srivastava AMDAnalyst Color Long Ideas Reiteration Analyst Ratings Tech Trading Ideas Best of Benzinga

 

Related Articles (AMD)

View Comments and Join the Discussion!