By Sam Boughedda
A Stifel analyst initiated coverage of Advanced Micro Devices, Inc. (NASDAQ:AMD) with a Buy rating and price target of $122 in a note Thursday.
The analyst also initiated coverage on several other semiconductor stocks today. On AMD, he told investors that the company “continues to execute well on a product roadmap that has enabled share gains in the Client Computing and Server markets."
"While competitor INTC has embarked on an aggressive multi-year transition strategy, we believe that the overall compute TAM in the hyperscale/cloud markets is likely to create continued opportunities for faster than historical growth for the leading processor suppliers," the analyst wrote.
Stifel said that looking ahead, they believe AMD's expanded IP portfolio and the ability to offer platform solutions will likely emerge as a competitive advantage.
“From a near-term perspective, while fears of a potential peak in PC market momentum are likely to continue, we believe that recent share price weakness reflects those concerns," the analyst concluded.
AMD shares are up more than 4% Thursday.