On Monday, the trading prices for Advanced Micro Devices (AMD) recorded a surge as Barclays shared an update for the chipmaker’s stock status.
The analysts at Barclays reportedly upgraded the stock status for AMD. This resulted in pushing the trading prices for the chipmaker’s stocks in the latest session.
This has added a positive factor to the already running bullish rally that was constantly pushing the trading prices for AMD.
Since the past week, the stock trading prices for AMD have continued surging. Even now, the situation is positive for the company and the shareholders are filled with joy over the stock performance.
Upgrade by Blayne Curtis
Blayne Curtis, one of the senior analysts at Barclays recently made an announcement pertaining to the stock status of AMD.
He issued a statement that they have upgraded the stock status for the chip manufacturing company to “Overweight”.
This means that Barclays now has more trust in AMD than it had in the past. In addition to the stock status, the banking institution has also increased the price target for AMD’s shares.
Previously, Barclays had set the price target for Barclays to $70 per share. However, they have increased the price target by $15 per share, bringing it up to $85 per share.
The analysts at the banking investment firm have claimed that the performance delivered by AMD is much better than Intel. It is among the top rivals AMD has in the chip manufacturing market.
AMD has gained a lot of recognition in the server market and is now leading the sector, leaving behind Intel. It even launched a new data center last year in Genoa.
Lisa Su, the CEO at AMD mentioned that they will be able to provide all kinds of ownership and services to the enterprises. These ownerships/services would be of low cost, lower OPEX, and lower CAPEX.
As per Curtis, they are not expecting any competition from Intel in the upcoming days. Intel may not be able to compete with them until they are able to come up with their boasted services.
They will need to come up with Sierra Forest/Granite Rapids, which is expected to be out in 2024. Although AMD has mentioned that they will be launching the new platforms in 2024, they may not come out until 2025.
On the other hand, Curtis has predicted that AMD will continue expanding its business and revenues with new platforms coming to fruition.
Meta has been working on a number of platforms that even include the metaverse projects. The users will need strong and reliable chips in order to run such programs and projects.
This is where the AMD chips will come into place and that will eventually increase their demand in the market.
Share Price Performance of AMD
After the announcement, the share prices for AMD have experienced a major push. They have reportedly surged by 7.85% in the latest trading sessions.
Even the prior trading session saw a boost in the trading prices of AMD shares. On Friday, the share prices for AMD recorded a 3.5% boost.
At the time of writing, the company’s shares are trading at a high of $75.57 per share.
When it comes to the chip sector benchmark, which is the Philadelphia Semiconductor index also flew high due to AMD’s strong performance.
The particular index recorded a 3.11% surge in the Friday trading session. Throughout the month of January, the particular index surged by 10.4%.
Earnings for the Third Quarter
In the last (3rd) quarter, AMD had not posted very promising figures. Its earnings were weaker than the expectations set by the analysts.
The company reported it had generated earnings that were worth 67 cents per share. As for the revenues, they generated around $5.6 billion.
Despite posting slow figures from the networking sector, the company reported high gains from the data center and the gaming businesses.