FBR Capital analyst Christopher Rolland came out today with his thoughts on Advanced Micro Devices, Inc. (NASDAQ:AMD), after holding investor meetings with the company’s CEO Dr. Lisa Su and investor relations’ Ruth Cotter. The analyst also reiterated a Market Perform rating on the stock with a $3.50 price target, which implies an upside of 48% from current levels.

Rolland noted, “In our view, the company has wisely directed its strategic focus away from the core PC market and toward gaming APUs, microservers, and custom-embedded processors: areas on which its larger competitor is less focused. However, we now believe much of this transition has already played out with visibility into meaningful peak earnings elusive.”

“Dr. Su believes strongly in the company’s vast portfolio of IP, with a strong focus on custom and semi-custom products to provide an easier avenue for IP monetization. While the PC market provides a large base for R&D cost absorption, AMD’s CEO is likely looking to other markets for monetization. Dr. Su believes that if AMD’s core processors (particularly server) can surpass minimum performance thresholds, the company’s products present a strong performance per cost value proposition versus AMD’s larger competitor.”, the analyst added.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Christopher Rolland has a total average return of 12.9% and a 68.4% success rate. Rolland has a -1.2% average return when recommending AMD, and is ranked #208 out of 3629 analysts.

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