Wedbush Securities on Thursday started coverage of major names in chips and data storage, posting ratings including a buy on Advanced Micro Devices (AMD) - Get Report  and a sell on Western Digital. (WDC) - Get Report

The move comes a day after the semiconductor sector got a boost: Micron Technology's (MU) - Get Report earnings report showed strong signs that a global oversupply of chips is abating. That's an issue that has weighed on pricing in the devices since second-half 2018.

Analyst Mathew Bryson, leading the coverage, rates:

AMD buy with a $35 price target;

Nvidia (NVDA) - Get Report buy with a $184 target;

Seagate  (STX) - Get Report hold, with a $35 target;

Intel (INTC) - Get Report sell, with a $37.50 target, and,

WDC sell, with a $32.50 target.

He rates Micron hold with a $30 price target. MU shares shot up Wednesday after its Tuesday afternoon earnings report beat expectations handily.

"We remain less positive about [calendar year 2019 second-half] fundamentals and to some extent Micron's execution," Bryson said in his note.

He added: "While MU's [fiscal-fourth-quarter] guide appears conservative (given implied memory ASP declines in at least the mid teens), we have not yet encountered signs that memory prices might reverse and have little confidence this quarter will mark a bottom for the industry." 

As for his bullishness on AMD, the company's "early adoption of a distributed 'chiplet' architecture combined with a shift to leading edge geometries positions the company to take meaningful share from INTC in both the PC and server markets over the next few years (particularly if INTC continues to struggle with execution)."

In recent trading: 

  • AMD: +1.92%
  • Nvidia: +1.92%
  • Intel: -1.64%
  • Micron: +2.55%
  • Western Digital: +2.47%
  • Seagate: down 1.25%

The iShares S&P semiconductor index (SOXX) - Get Report rose 1.2%.

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