Pay close attention to Advanced Micro Devices (AMD). After falling from a high of about $105 to a recent low of about $56, the oversold stock is starting to show signs of life again. In fact, from a current price of $72.37, we’d like to see it challenge $80 a share again, near-term. Helping, UBS and Baird upgraded the stock.
UBS upgraded AMD to a buy rating, with a price target of $95 a share.
Baird analyst Tristan Gerra also just upgraded the beaten-down tech name to outperform with a price target of $100. He believes the company’s newest Genoa chips could widen the company’s competitive moat. As quoted by Yahoo Finance:
“Supply chain checks highlight strong reception of Genoa (5nm Zen 4) at data center OEMs, which are shifting significant resources in support of AMD,” Gerra wrote. “Genoa’s very significant performance step up should translate into an acceleration in market share gains for AMD in 2023, along with significantly higher pricing and a higher gross margin profile, reinforcing AMD’s EPYC performance leadership for years to come.”
AMD is up about 3.5% in pre-market on the news.