Morgan Stanley Upgrades AMD Says ‘Table Is Set Well’ For 2020

Morgan Stanley Upgrades AMD, Says 'Table Is Set Well' For 2020

A cautious stance on Advanced Micro Devices, Inc. (NASDAQ: AMD)
over the past year was "obviously" the wrong call but the "table is set well" for 2020, according to Morgan Stanley.

The Analyst

Morgan Stanley's Joseph Moore upgraded Advanced Micro Devices from Underweight to Equal-Weight with a price target lifted from $17 to $28.

The Thesis

Investors had reason to hold a bearish stance on AMD over the past year as the Street's estimates looked too high around graphics inflation, Moore wrote in a note. This scenario played out over the year as most of the Street's downward revision in estimates is due to graphics and a notable decline in the cryptocurrency industry.

Much has changed in AMD's favor, Moore said, including continued delays from rival products at Intel Corporation (NASDAQ: INTC) and Nvidia Corporation (NASDAQ: NVDA)'s heavy investments in ray tracing. As such, AMD faces an opportunity to enter an era of "sustained profits." AMD has multiple near-term catalysts to spur growth, including a cloud gaming opportunity where the company has a key advantage over rivals. Specifically, Nvidia is showing an interest in pursuing higher margin GeForce Now implementations and AMD boasts a strong relationship with console developers. Aside from gaming, AMD continues to seek "creative" ways of monetizing its graphics chips.

Price Action

Shares of Advanced Micro Devices were trading higher by 4.5 percent to $30.84 Thursday morning.

Article Produced By
Jayson Derrick

Benzinga Staff Writer

https://www.benzinga.com/analyst-ratings/analyst-color/19/06/13873974/morgan-stanley-upgrades-amd-says-table-is-set-well-for-2020

Related articles

4 Interesting Notes Regarding Milestone Token Offerings

4 Interesting Notes Regarding Milestone Token Offerings                               Token offerings come in many different shapes, forms, and sizes. That is only par for the course, as the cryptocurrency industry continues to grow and evolve at all times. Milestone Token offerings are seemingly the new hot trend, although they are not as common as one might […]

Learn More

Easy Guide to Getting Free Crypto

What If I Told You You Can Get Crypto For Free? One day, I woke up to new magical internet monies sitting in my online wallet: These are coins I’ve never bought. How did this happen? I soon learned that what I received was an “airdrop” – free cryptocurrency just for having the right crypto […]

Learn More

Bitmain Says Now-Lapsed IPO Made Firm More Transparent Reveals Appointment of New CEO

Bitmain Says Now-Lapsed IPO Made Firm More Transparent, Reveals Appointment of New CEO              Chinese crypto mining titan Bitmain’s filing to list an initial public offering (IPO) on the Hong Kong Stock Exchange (HKEx) has officially expired, according to an updated list of now-lapsed applications on the HKEx website on March 26. In a blog […]

Learn More

Leave a Reply

Your email address will not be published. Required fields are marked *