AMD Upgraded At Goldman On Valuation, Target Raised

Shares of Advanced Micro Devices Inc. (NASDAQ: AMD) are up nearly 4% in midday trading Wednesday after analyst Toshiya Hari upgraded the name from “Neutral” to “Buy” and added its shares to Goldman’s Conviction List.

Instead of seeing AMD’s 13% pullback since the September highs above $94 as weakness, Hari sees it as an opportunity. In a research note to investors the analyst said that the pullback offers a compelling buying opportunity to participate in what could be AMD’s “multi-year share gain and margin expansion story”. Hari raised his price target on the chipmaker’s stock by 12 points to $96 a share.

Goldman’s analyst, who reiterates a “Sell” rating on AMD’s rival Intel Corp. (INTC) with a price target of $38, down from $46, also thinks AMD is poised to see share gains across the personal-computer and server CPU markets.

These elements, along with metrics like gross margin expansion and operating expenditure leverage will likely drive AMD above-consensus earnings growth, Hari said.

Price Action

AMD was trading Wednesday up 6% at more than $81. The stock is up 78% year-to-date and 127% year-over-year.

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