Analysts from Canaccord and Cantor Fitzgerald delve into semi-conductor giant Advanced Micro Devices, Inc. (NASDAQ:AMD) and computing giant International Business Machines Corp. (NYSE:IBM) with divided perspectives. While Canaccord confidently likes AMD’s odds ahead of its third-quarter results, Cantor Fitzgerald advises to tread cautiously when it comes to IBM despite a solid earnings performance yesterday. Let’s explore why:

Advanced Micro Devices, Inc.

Ahead of Advanced Micro Devices’s third-quarter print expected this Thursday, October 20th, Canaccord analyst Matt Ramsay remains bullish in his “above-consensus estimates,” thanks to steady gaming console sales growth and a “shortening refresh cycle long-term,” a stable trend of unit share recovery for Polaris and Vega GPUs, and the upcoming 2017 launch of Zen in various CPU market tiers.

Therefore, the analyst reiterates a Buy rating on shares of AMD with an $8.50 price target, which represents a 25% increase from where the stock is currently trading. Additionally, Ramsay slightly boosts his 2016 EPS projection from $(0.16) to $(0.15) on back of better strength in gaming console chip sales during the company’s third quarter.

The analyst opines, “While visibility to Q4/16 results is limited with gaming console volumes expected lower seasonally and first material Zen CPU contributions only in 1H/17, we still anticipate operating profitability in Q4/16. With several catalysts still to come in 2017 and beyond, our BUY thesis remains intact despite the recent stock appreciation. In addition, several material upside call options remain for the AMD story that given a relatively fixed operating and now lower interest/tax cost basis could move non-GAAP EPS materially.”

Ultimately, “While we recognize that roadmap execution, competition and financial risks remain, we remain impressed with the new management team and anticipate a quick recovery to solid profitability given lower expenses necessitated by the company’s recent struggles,” Ramsay contends.

According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, five-star analyst Matt Ramsay is ranked #115 out of 4,180 analysts. Ramsay has a 65% success rate and earns 13.2% in his annual returns. When recommending AMD, Ramsay gains 10.3% in average profits on the stock.

TipRanks analytics demonstrate AMD as a Hold. Based on 17 analysts polled in the last 3 months, 4 rate a Buy on AMD, 10 maintain a Hold, while 3 issue a Sell. The 12-month price target stands at $6.05, marking a nearly 11% downside from where the shares last closed.screen-shot-10-18-16-at-11-10-pm

International Business Machines Corp.

Cantor Fitzgerald analyst Joseph Foresi remains sidelined on International Business Machines after the company reported earnings yesterday, despite noting an earnings beat. From Foresi’s perspective, the core business continues its downturn with Systems “declining double digits,” and revenues falling for the 18th consecutive quarter. As such, the analyst reiterates a Hold rating on IBM while lowering the price target from $162 to $156, which represents a 3% increase from where the shares last closed.

Though IBM’s EPS of $3.29 outclassed the Street’s estimate of $3.23, the company’s revenue of $19.23 billion saw a 0.3% decline, although it did hit above FactSet consensus of $19.01 billion. IBM maintains its 2016 non-GAAP EPS guidance of “at least” $13.50, compared to the past Street projection of $13.51. Foresi raises his non-GAAP EPS estimate from $13.52 to $13.54.

“We maintain our HOLD rating on IBM, viewing a return to growth as necessary for sustainable multiple expansion. Strategic Imperatives buoyed results again actually showing an acceleration, and currency boosted numbers somewhat. The core business saw less of a decline in growth than in previous periods and we seem to be getting closer to an inflection point for the return to overall growth. Overall top-line performance has been boosted by acquisitions as well. We could become more constructive upon better visibility on timing of a sustainable return to growth and margin outlook,” Foresi concludes.

As usual, we recommend taking analyst notes with a grain of salt. According to TipRanks, one-star analyst Joseph Foresi is ranked #3,699 out of 4,180 analysts. Foresi has a 42% success rate and faces a loss of 2.7% in his yearly returns. When recommending IBM, Foresi earns 0.0% in average profits on the stock.

TipRanks analytics indicate IBM as a Hold. Based on 16 analysts polled in the last 3 months, 4 rate a Buy on IBM, 9 maintain a Hold, while 3 issue a Sell. The consensus price target stands at $153.93, marking a 2% upside from where the stock is currently trading.  screen-shot-10-18-16-at-11-11-pm