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Morgan Stanley Pounds the Table on AMD Stock

Morgan Stanley Pounds the Table on AMD Stock

With an endless selection of odds to come in 2022, this year has been going like no other in recent times. just ask investors Advanced Micro Devices (amd,, After making a habit of consistently outperforming the market, AMD’s shares are on the backfoot (down 43%) in 2022 — a highly erratic event.

Nevertheless, according to Morgan Stanley joseph mooreDespite the huge uncertainty, now is the time for investors to take advantage of the opportunity after the stock collapses.

“While the demand picture across all end markets is mixed given the overall economy, we think the stock has improved more – we see share gains and mix correction giving them greater power with double-digit growth next year.” And with the stock down more than 48% from 4Q21 highs, we see risks as a massive price move,” Moore said.

That’s not to say that there aren’t any legitimate concerns about the slowdown in the economy and the impact on AMD’s business — especially on the consumer side, which Moore thinks is the main culprit behind the share price weakness.

And with PC processors, graphics and consoles accounting for 55% of revenue, analysts are expecting “meaningful improvement” in PCs over the next few quarters. That said, even with concerns surrounding consumer-connected end-markets, Moore doesn’t believe AMD is exposed compared to other major competitors.

And providing a counterpoint, with the data center plus Xilinx products now representing about 50% of gross profit dollars, and both boast “strong share profit potential” over the next 2-3 years, Moore feels. That this figure could rise to around 65%. -70%. As such, even though analysts remain cautious on the general state of semiconductors, AMD’s “strength in servers” should be able to show “solid growth now at a reasonable valuation.”

To this end, Moore resumed coverage of AMD stock with an overweight (ie, buy) rating and a $103 price target. Should that figure be reached, investors are looking at a 12-month gain of 25%. (To see Moore’s track record, click here,

Among Moore’s allies, AMD’s ratings are mixed, though the bulls remain in charge; Based on a 15 buy versus 10 hold, the stock boasts a Moderate Buy consensus rating. The average price target is faster than Moore allowed; At $136.71, this figure represents a one-year upside of ~66%. ,View AMD Stock Forecasts on TipRanks,

To find great ideas for trading tech stocks at attractive valuations, visit TipRanks. best stocks to buyA newly launched tool that aggregates all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are those of the featured analyst only. The content is to be used for informational purposes only. It is very important to analyze yourself before making any investment.

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Morgan Stanley Pounds the Table on AMD Stock

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