Morgan Stanley Sees Further Share Gains For AMD - Read Why

Morgan Stanley analyst Joseph Moore reinstated Advanced Micro Devices, Inc AMD with an Overweight and a $103 price target 23% upside).

AMD continues to execute its product roadmap while Intel Corp INTC attempts to regain its footing and deliver the long-awaited server product. 

Moore sees further share gains for AMD in notebook and server processors in 2022 and 2023, offsetting industry-wide PC weakness and a likely gaming correction in 2023.

He noted AMD remains in a gaining position over the next couple of years, with the company likely to continue to win a share in cloud servers as supply constraints ease. 

Moore's market view for semiconductors is cautious, particularly for 2023. Still, after the recent selloff, AMD offers potential for solid numbers at a reasonable valuation, with probably the best chance in his coverage of achieving consensus numbers in 2022 and 2023. 

While a digestion phase in PCs and consoles appears likely, Moore budgeted for some caution next year; he believes the strength in the server (with further market share gains) should allow the company to keep posting solid growth at a now-reasonable valuation. 

The price target reflects further share gains at the expense of Intel and 11% y/y growth in 2023 in line with the other high-growth semis names but a discount on the multiple. 

Mizuho recently shared similar thoughts on AMD. Citi expected a contraction in the PC market to impact AMD negatively. 

Price Action: AMD shares traded lower by 0.93% at $83.01 in the premarket on the last check Wednesday.

Photo by cebbi from Pixabay

Posted In: Analyst ColorNewsPrice TargetAnalyst RatingsTech

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.