Chipmaker Advanced Micro Devices (AMD) - Get Report received a price-target boost from Piper Jaffray on Tuesday amid expectations that the company’s competitive positioning relative to rival Intel “appears to be incrementally improving.”
In a research note to clients, Piper Jaffray analyst Harsh Kumar raised his price target for AMD to $40 from $35 while keeping a neutral rating on the shares on expectations that the company is poised to benefit from CPU issues that have been impacting Intel (INTC) - Get Report, and are now starting to creep into the server side as well as the mid-end PC business.
The price-target upgrade coincides with AMD hitting the No. 4 slot on the TheStreet’s 25 best stocks for 2019.
For 2019, TheStreet has compiled a list of the top 25 stocks of the year, looking at everything from stock performance and quarterly results versus expectations to execution against strategy and each stock’s overall story. Please check TheStreet.com each day between now and then to read about our latest picks.
Following its latest rally, AMD's stock is up more than 120% in 2019 and more than 20-fold from its early-2016 lows. And along the way, the CPU and GPU developer has gone from being the subject of bankruptcy speculation to being a solidly profitable firm that has a healthy balance sheet and - with the help of both good execution and Intel's surrendering of an age-old manufacturing technology lead to AMD supplier Taiwan Semiconductor (TSM) - Get Report, “is taking meaningful share in some lucrative CPU markets,” according to TheStreet’s Eric Jhonsa.
While the company still faces meaningful competition “it's safe to say that the debate about AMD's future growth prospects has changed quite a lot since the not-too-long-ago days when its survival was called into question,” wrote Jhonsa. “And certainly, the investor debate about what kind of valuation AMD's stock deserves has changed a lot as well.”