Stock Market News

Morgan Stanley Positive on AMD Despite Budgeting for Caution

2022.06.22 17:35

Morgan Stanley Positive on AMD Despite Budgeting for Caution
Morgan Stanley Positive on AMD (AMD) Despite Budgeting for Caution

By Sam Boughedda

Morgan Stanley analyst Joseph Moore resumed coverage on Advanced Micro Devices Inc (NASDAQ:AMD) Wednesday with an Overweight rating and $103 price target, telling investors in a note that after the recent selloff, AMD offers potential for solid numbers at a reasonable valuation.

Moore explained that a digestion phase in PCs and consoles appears likely, and Morgan Stanley is budgeting for some caution next year. However, they believe strength in the server market (with further market share gains) should allow the company to keep posting solid growth at a now-reasonable valuation.

“AMD remains in a share gain position over the next couple of years at least, with the company likely to continue to take share in cloud servers as supply constraints ease. While the demand picture across all of the end markets is mixed given the plateauing economy, we think that the stock has over-corrected – we see share gains and mix improvement allowing them to power through more than most with double digit growth next year, and with the stock down over 48% from its 4Q21 highs, we see the risks as largely priced in,” said Moore. “We are modestly above consensus on CY22 numbers, and while we are well below for CY23, we would argue that current anxieties reflect a worse outcome despite stale sell side numbers.”

The analyst put AMD’s sharp sell-off down to macro concerns impacting the consumer side of their business, with PC processors, graphics, and consoles making up 55% of revenues, with Morgan Stanley anticipating a “meaningful correction in PC in the next few quarters.”

“We note that we are below consensus for CY23, for AMD and for every other stock in our coverage, but we see AMD as closer to consensus than peers, at a valuation that has already corrected more than other high growth companies such as MRVL and NVDA.”

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 76,037.37 1.45%
vested-xor
Vested XOR (VXOR) $ 3,405.08 99,999.99%
ethereum
Ethereum (ETH) $ 2,915.86 2.28%
tether
Tether (USDT) $ 1.00 0.06%
solana
Solana (SOL) $ 199.72 5.81%
bnb
BNB (BNB) $ 598.58 0.53%
usd-coin
USDC (USDC) $ 1.00 0.01%
xrp
XRP (XRP) $ 0.552329 0.93%
dogecoin
Dogecoin (DOGE) $ 0.197565 1.74%
staked-ether
Lido Staked Ether (STETH) $ 2,910.51 2.16%
cardano
Cardano (ADA) $ 0.426998 14.66%
tron
TRON (TRX) $ 0.160812 0.86%
the-open-network
Toncoin (TON) $ 4.90 0.02%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,449.90 2.18%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 1.56%
avalanche-2
Avalanche (AVAX) $ 27.41 0.51%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 75,929.34 1.38%
weth
WETH (WETH) $ 2,916.89 2.32%
chainlink
Chainlink (LINK) $ 12.76 2.16%
bitcoin-cash
Bitcoin Cash (BCH) $ 378.17 0.45%
sui
Sui (SUI) $ 2.33 2.27%
polkadot
Polkadot (DOT) $ 4.20 1.21%
leo-token
LEO Token (LEO) $ 6.35 2.58%
usds
USDS (USDS) $ 1.01 0.65%
litecoin
Litecoin (LTC) $ 71.48 0.69%
uniswap
Uniswap (UNI) $ 8.91 2.70%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,066.98 2.34%
near
NEAR Protocol (NEAR) $ 4.21 0.41%
aptos
Aptos (APT) $ 9.75 1.60%
pepe
Pepe (PEPE) $ 0.000011 5.45%
bittensor
Bittensor (TAO) $ 505.85 4.46%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.41 0.51%
internet-computer
Internet Computer (ICP) $ 7.74 2.54%
dai
Dai (DAI) $ 1.00 0.02%
monero
Monero (XMR) $ 164.76 1.41%
stellar
Stellar (XLM) $ 0.101432 3.08%
ethereum-classic
Ethereum Classic (ETC) $ 20.22 0.33%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.04%
kaspa
Kaspa (KAS) $ 0.113169 6.47%
whitebit
WhiteBIT Coin (WBT) $ 19.66 2.13%
aave
Aave (AAVE) $ 180.32 3.19%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.343016 0.41%
crypto-com-chain
Cronos (CRO) $ 0.092375 7.42%
blockstack
Stacks (STX) $ 1.66 2.25%
okb
OKB (OKB) $ 40.22 1.31%
first-digital-usd
First Digital USD (FDUSD) $ 0.999904 0.12%
dogwifcoin
dogwifhat (WIF) $ 2.34 1.39%
arbitrum
Arbitrum (ARB) $ 0.577542 0.31%
mantle
Mantle (MNT) $ 0.661771 7.06%
filecoin
Filecoin (FIL) $ 3.73 0.84%