Advanced Micro Devices Inc (AMD)

[BornAtNight]

AMD's stock rallies after analyst boosts price target 81%

8:02 am ET September 20, 2018 (MarketWatch)





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Shares of Advanced Micro Devices Inc. (AMD) rallied 2% in premarket trade Thursday, after Stifel Nicolaus analyst Kevin Cassidy raised his price target by 81% to $38 from $21, citing increased optimism regarding market share gains. Cassidy's target, which is 22% above Wednesday's closing price of $31.21, is now the third highest among the 31 analysts surveyed by FactSet; FBN Securities and Rosenblatt Securities both have $40 price targets. Cassidy said that since he upgraded AMD to buy in April, management has continued their "stellar performance" of executing to plan. He said the 7-nanometer EPYC server chip is sampling to customers, which is expected to generate revenue beginning in the second-half of 2019. "Meanwhile, Intel not only hasn't had a competitive response but is likely struggling to meet demand," Cassidy wrote in a note to clients. "This opens the door for continued market share gains by AMD, in our view." AMD's stock has tripled year to date (up 203.6%), while Intel shares (INTC) are little changed and the S&P 500 has gained 8.8%.

-Tomi Kilgore; 415-439-6400; [e-mail]