Market Overview

4 Reasons Wedbush Sees More Room For AMD's Stock To Run

Share:
4 Reasons Wedbush Sees More Room For AMD's Stock To Run

Advanced Micro Devices, Inc. (NASDAQ: AMD) continues to enjoy a "reemergence" in the CPU market and to a lesser extent GPUs and the momentum can be sustained over the coming years, according to Wedbush.

The Analyst

Wedbush's Matthew Bryson initiated coverage of AMD with an Outperform rating and $35 price target.

The Thesis

Bryson said the bullish case for AMD's stock is based on four positive readouts which outweigh the negative attributes:

  1. AMD's improving position in CPUs could be leveraged to gain share in the server market when the company releases its Rome parts.
  2. AMD's production shifts to Taiwan Semiconductor in 2018, which creates a "better path" towards next-generation components made possible on advanced nodes.
  3. The GPU market is likely to benefit from gaming as AMD's console and cloud socket makes it "more certain" AMD will participate in the growth.
  4. AMD continues to be a primary beneficiary from Intel Corporation (NASDAQ: INTC), which Bryson said continues to experience multiple struggles on several fronts.

A few items to dislike include difficulty in determining the real demand for GPUs after the cryptocurrency collapse in 2018, difficulties in modeling peak market share levels and Intel poaching multiple senior AMD executives, which could give it an upper hand over time.

Wedbush gave Intel an Underperform rating and a $37.50 price target.

Price Action

Shares of AMD traded higher by 1.2% to $30.28 in Thursday's pre-market session.

Related Links:

AMD Rallies On Micron Earnings, Rumors Of Replacing Intel In Microsoft Surface Devices

Susquehanna: AMD Production Shift To Taiwan Semiconductor Highlights Manufacturer's 'Domination'

Latest Ratings for AMD

DateFirmActionFromTo
Nov 2019DowngradesOutperformMarket Perform
Nov 2019MaintainsOutperform
Nov 2019MaintainsNeutral

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

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

 

Related Articles (INTC + AMD)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
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

Medicine Man's Andy Williams On M&A, Colombia: 'We Can Become A Dominant Supplier Of Cannabis To The World'

Accenture Ticks Lower Despite Q3 Earnings Beat