Ascendiant coverage launch gives a lift to AMD

|By:, SA News Editor

As part of a chip sector coverage launch, Ascendiant Capital's Cody Acree (previously with Williams Financial) has started AMD (AMD +3.5%) with an Outperform and $5 PT.

Acree: "While we are not expecting any singular dramatic near-term catalyst, we do see the company working through a methodic restructuring and repositioning that has already reduced spending and earned significant [design] wins."

Acree notes AMD's restructuring has lowered headcount by 15% and opex by 26%, while helping the chipmaker once more be cash flow positive. He also expects new APU launches to allow AMD to "regain moderate share" in the consumer PC space.

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