Advanced Micro Devices, Inc. (NASDAQ: AMD) is having an incredibly strong start to the trading session this morning, and for good reason. The company was the center of an analyst note that outlined an incredibly bullish argument.
As you can imagine, the news proved to excite investors, sending the stock screaming for the top. Today, we’ll talk about:
- The analyst news;
- what we’re seeing from AMD stock as a result; and
- what we’ll be watching for ahead.
AMD Stock Gains On Analyst Views
As mentioned above, Advanced Micro Devices is having a strong day in the market today after an analyst note led to investor excitement. The analyst, Instinet, initiated coverage on the stock with a buy rating.
The analyst leading up the report was David Wong, who said that he was encouraged by several aspects of the company. In particular, he pointed to the company’s solid positioning in the x86 microprocessor and standalone GPU markets.
Moreover, Wong predicts that AMD can achieve greater than 10% market share in x86 datacenter processors as well as 15% to 20% share in desktops and notebooks. He also sees the company achieving greater than 30% share in desktop and mobile GPUs.
Moreover, Wong believes that AMD will be able to reach profits of $2 per share within the next few years. All in all, with a strong position to take a large share of the market, and work to expand profiability, Wong sees AMD as a compelling potential opportunity.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. When it comes to Advanced Micro Devices, while the company hasn’t reported any news of its own, the news proved to be overwhelmingly positive.
After all, with an analyst weighing in with such a positive opinion, it’s not surprising to see that investors are excited, sending the stock on a run for the top.
As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:00), AMD is trading at $29.42 per share after a gain of $2.67 per share or 9.98% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on AMD. In particular, we’re interested in following the story surrounding the company’s continued work to take the lion’s share of the x86 market. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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