By Christiana Sciaudone
Investing.com -- Advanced Micro Devices Inc (NASDAQ:AMD) jumped more than 4% after Bank of America (NYSE:BAC) bumped its price target higher.
Analyst Vivek Arya raised the price target to $120 from $110, StreetInsider reported. The company has demonstrated its supercomputing success with increasing market share and an endorsement by Google (NASDAQ:GOOGL). These two events suggest break-out potential in AMD’s data center segment, Arya said.
The analyst maintained a buy rating on the stock.
Even if there are supply constraints, the improving mix towards data centers could provide catch-up potential, Arya wrote in a note. "We find valuation compelling (only semis below its 3-yr median forward PE), and at 6x CY22E EV/S a nearly 50% discount to SPX Infotech growth peers. We reiterate our Buy, raise our PO to $120 (30%+ upside) from $110 now on 45x CY22E EPS (vs. 42x prior) in line with growth peers."
Shares are down about 4% since hitting a record in January.