Market Overview

Morgan Stanley Upgrades AMD, Says 'Table Is Set Well' For 2020

Share:
Morgan Stanley Upgrades AMD, Says 'Table Is Set Well' For 2020

A cautious stance on Advanced Micro Devices, Inc. (NASDAQ: AMD) over the past year was "obviously" the wrong call but the "table is set well" for 2020, according to Morgan Stanley.

The Analyst

Morgan Stanley's Joseph Moore upgraded Advanced Micro Devices from Underweight to Equal-Weight with a price target lifted from $17 to $28.

The Thesis

Investors had reason to hold a bearish stance on AMD over the past year as the Street's estimates looked too high around graphics inflation, Moore wrote in a note. This scenario played out over the year as most of the Street's downward revision in estimates is due to graphics and a notable decline in the cryptocurrency industry.

Much has changed in AMD's favor, Moore said, including continued delays from rival products at Intel Corporation (NASDAQ: INTC) and Nvidia Corporation (NASDAQ: NVDA)'s heavy investments in ray tracing. As such, AMD faces an opportunity to enter an era of "sustained profits."

AMD has multiple near-term catalysts to spur growth, including a cloud gaming opportunity where the company has a key advantage over rivals. Specifically, Nvidia is showing an interest in pursuing higher margin GeForce Now implementations and AMD boasts a strong relationship with console developers.

Aside from gaming, AMD continues to seek "creative" ways of monetizing its graphics chips.

Price Action

Shares of Advanced Micro Devices were trading higher by 4.5 percent to $30.84 Thursday morning.

Related Links:

Rosenblatt: AMD Will Be 'Much Bigger Player In High-End GPU Gaming'

Analysts Impressed With AMD's Execution, Pipeline Following Solid Q1 Results

Latest Ratings for AMD

DateFirmActionFromTo
Aug 2019Initiates Coverage OnHold
Aug 2019Initiates Coverage OnHold
Jul 2019MaintainsEqual-Weight

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

Posted-In: chipsAnalyst Color Cryptocurrency Upgrades Price Target Top Stories Markets Analyst Ratings Best of Benzinga

 

Related Articles (INTC + AMD)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
XELMaintains60.0
SOMaintains54.0
SREMaintains141.0
EXCMaintains56.0
ESMaintains77.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

After Month In Red, Stocks On A Roll Despite Trade Fears As Jobs Data Loom

Viewing Sherwin Williams' $25 Per Share Loss Through Benzinga's Securities Lending Volatility Index