Advanced Micro Devices, Inc (AMD) has gotten its first Buy recommendation in ten years from research company Bernstein. Due to good product designs and advanced manufacturing processes courtesy of its crucial manufacturing partner, Taiwan Semiconductor Manufacturing Company, AMD has steadily gained market share over its larger rival Intel Corporation over the last few years (TSMC).
The share price decrease that occurred earlier today in the aftermath of a global political crisis has been reversed thanks to Bernstein’s price target raise for AMD.
Bernstein’s report, which was shown earlier today, raised AMD’s price target to $150, representing a 32 per cent rise over the company’s Monday closing price of $113.83. AMD has continuously provided excellent quarterly growth for more than a year. Its most recent earnings release saw the business announce $16 billion in revenue, a dizzying 68 per cent increase year-over-year.
Bernstein analyst Stacy Rasgon provided his thoughts on the Santa Clara, California-based semiconductor company in a new research note. This resulted in the analyst upgrading AMD’s rating from Market Perform to Outperform and the price above target increase. In it, the analyst stated that one of his firm’s “worst missed calls” during its stint on Wall Street was losing out on AMD.
He also stated that his firm is pessimistic about AMD due to the collapse of the personal computing sector and troubles with US chipmaker GlobalFoundries. Earlier this month, the upgrade comes after AMD acquired Xilinx, Inc, a field-programmable gate array (FPGA) designer. The purchase adds a sizable revenue to AMD’s bottom line and gives the firm a significant data centre opportunity. According to AMD’s internal projections presented in a presentation following the completion of the Xilinx acquisition, this area would have a total addressable market (TAM) of $35 billion by 2023.
AMD’s lone opponent in the x86 computing industry, Intel, is ramping up its efforts to resurrect the advanced chipmaker, which has previously missed many manufacturing targets. TSMC, which has successfully reduced transistor sizes over the years, manufactures AMD’s processors. As a result, the company’s products have become a popular choice among a wide range of clients.
However, AMD’s rapid expansion has slowed in some markets. For example, a market share report for the Japanese do-it-yourself (DIY) PC market shows that Intel has reclaimed the lead, despite AMD’s troubles with a historic semiconductor supply crisis impacting the whole industry.