Argus upgrades AMD to 31% upside

|By:, SA News Editor

Argus upgrades AMD (NASDAQ:AMD) from Hold to Buy with an $18 price target, a 31% upside on yesterday’s closing price.

Analyst Jim Kelleher says this week’s earnings report made it clear that AMD’s business model has a sustainable path towards profitability, top-line, and bottom-line growth. 

Kelleher notes that AMD continues to improve execution in high-cost and high-performance products, which positions AMD to take advantage of multiple categories experiencing global momentum. The categories include client and server computing, consumer gaming and electronics, graphics processing, cloud data center, AI, and blockchain. 

The analyst thinks AMD’s profit margins will eventually close the gap with stronger peers to become “industry competitive.” 

AMD shares are down 0.7%.    

Previously: AMD down despite Q4 beats, upside guidance (Jan. 30)

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