Intel's 'Strategic Faux Pas' Could Be AMD's Gain Says Northland Capital Analyst

Advanced Micro Devices, Inc. AMD could benefit from Intel Corporation’s INTC “strategic faux pas” to try to reenter the foundry business, according to Northland Capital Markets.

The Advanced Micro Devices Analyst: Gus Richard upgraded the rating for Advanced Micro Devices from Market Perform to Outperform, while raising the price target to $96.

The Advanced Micro Devices Thesis: Taiwan Semiconductor is unlikely to relinquish its manufacturing lead to Intel “any time soon,” Richard said in the upgrade note.

“We believe that Intel's commitment to re-entry into the foundry market and maintain leading-edge manufacturing capacity makes it a low priority at TSMC,” the analyst wrote. On the other hand, Advanced Micro Devices is a preferred customer for Taiwan Semiconductor as all its leading-edge volume is produced at Taiwan Semiconductor, he noted.

“INTC expansion into the foundry market will increase AMD as a priority for TSMC and INTC will be persona non grata,” Richard said. “For this reason, we expect AMD's market share momentum to continue,” he added.

AMD Price Action: Shares of Advanced Micro Devices are up 0.039% to $76.51 at the time of publication Thursday.

(Photo: Paul Sakuma Photography via AMD)

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