Advanced Micro Devices (AMD) Stock Could Rocket to $30, Says Analyst


Rosenblatt analyst Hans Mosesmann is out today with a bullish note on shares of Advanced Micro Devices (NASDAQ:AMD), after hosting institutional investor meetings this week with AMD’s CFO Devinder Kumar and IR Corporate VP Laura Graves.

Mosesmann was left impressed by the deep dives long-focused investors are doing in the name after many years of disregard. As such, based on his renewed conviction post-meetings of a multi-year double digit growth profile for AMD, the analyst reiterates a Buy rating on stock, while raising the price target to $30 (from $27), which implies an upside of 35% from current levels. (To watch Mosesmann’s track record, click here)

Mosesmann noted, “Most investors were keen on the execution AMD has delivered over the past couple of years which Mr. Kumar attributed to Lisa Su’s (CEO) and Mark Papermaster’s (CTO) strategic decision in ~2012 to engineer a multiyear high performance compute roadmap. Along with both key game console wins to stabilize the business and Mr. Kumar’s expertise on the financial side this multi-year effort is paying off. Lisa Su’s understated and strong leadership along with consistent messaging to investors/customers has garnered significant accolades.”

“Given AMD’s success over the past several quarters, consolidation, and disarray in certain quarters in Silicon Valley, the company is seeing an important (if not historical), influx of engineering and management candidates. We view heightened interest within the industry to desire to be at AMD is a good indicator for investors to consider going forward,” the analyst added.

Overall, Wall Street sizes up AMD as a ‘Moderate Buy’ stock, as the bulls edge out the cautious on the chip giant. In the last 3 months, AMD has received 10 bullish ratings versus 8 analysts hedging their bets, and two bears. Yet, the consensus price target hints at caution baked into expectations here. The 12-month average price target of $19.35 reflects a potential downside of 13% from current levels. (To see the full picture on TipRanks, click here)

 

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