Rosenblatt analyst Hans Mosesmann urged investors to buy the dip in shares of Advanced Micro Devices Inc (NASDAQ:AMD) after a near 15% pullback in the last three days.
AMD stock price fell sharply yesterday after Barclays analyst Blayne Curtis downgraded to Equal Weight from Overweight with a $115.00 per share price target, down from $148.00.
"AMD still looks positioned to gain share this year in both the client and server markets, and while we do see upside to the 31% growth target this year, where we have an issue is for 2023, as we see cyclical risk across several end markets (PC, Gaming, and broad-based/XLNX)," Curtis said in a client note.
However, Mosesmann dismissed these concerns as:
- AMD is not in any jeopardy of missing the +30% y/y sales growth target for 2022, according to Mosesmanns checks;
- Aggressive PC CPU pricing from either AMD or Intel (NASDAQ:INTC) still to be seen;
- AMD to continue to gain PC CPU market share;
- AMD to gain significant data center market share, the thrust of Mosesmanns buy thesis;
- Intel has limited ability to defend server share at any price;
- Intel not in a position to cut prices given margin pressures;
- AMD fundamentals are better today than they were entering the year.
"We are buyers," Mosesmann concluded in an emphatic fashion.
AMD stock price is down 2.1% today.
By Senad Karaahmetovic