The firm maintained its "buy" rating on the Sunnyvale, CA-based semiconductor company, saying it is posed for more growth as it prepares to launch its Zen CPU.
Advanced Micro Devices' business is ramping up due to its key gaming console partners and "4K/VR gaming increasing hardware refresh rates," Canaccord added.
"While we recognize that roadmap execution, competition and financial risks remain, we remain impressed with the new management team and anticipate a quick recovery to solid profitability given lower expenses necessitated by the company's recent struggles," the firm continued in an analyst note.
Canaccord said that Advanced Micro Devices' Zen platform isn't quite on par with Intel's (INTC) Skylake processors, but it should deliver solid performance levels.
Shares of Advanced Micro Devices were sliding in early afternoon trading today.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ADVANCED MICRO DEVICES as a Sell with a ratings score of D. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow and poor profit margins.
You can view the full analysis from the report here: