Advanced Micro Devices (NASDAQ: AMD) stock jumped 5.70%following a buy rating endorsement from two Wall Street banks.
Raymond James initiated coverage on the stock giving it an outperform rating with a price target of $100. James cited the 15% pullback year to date, adding that the time to get involved with the stock is now. AMD has been hurt by investor anticipation of Intel’s (NASDAQ: INTC) turnaround and NVIDIA’s (NASDAQ: NVDA) announcement that it moves into the CPUs business. However, James believes that AMD will maintain its CPUs advantage up to 2024.
Bank of America also reiterated a buy rating for AMD stock with a price target of $100. The bank cited the recent underperformance saying that it will correct as investors buy into the advantage the company’s Milan hold over new Ice Lake CPUs from Intel. AMD will continue leading since Intel’s 7nm chips won’t hit the market for the next couple of years. AMD will gain 3% of market share in the coming years, probably from Intel; thus investors should keep an eye on it.