AMD News – Advanced Micro Devices Gets Positive Assessment Ahead of Earnings
Advanced Micro Devices (AMD) – Get Report received a positive assessment from Deutsche Bank ahead of the semiconductor giant’s first-quarter earnings report.
But Deutsche analyst Ross Seymore kept his rating on the stock at hold, with a $90 price target, reflecting valuation. The earnings report from Advanced Micro Devices is scheduled for next Tuesday.
“For AMD‘s report/guide, we expect another characteristic beat/raise, noting that both of AMD‘s closest peers Intel (INTC) – Get Report and Nvidia ((NVDA)) – Get Report have already positively pre-announced 1Q21 results,” he wrote in a commentary.
“With working-from-home strength persisting through 1Q21, we expect the potential for upside in the company’s C&G [computing and graphics] segment, albeit somewhat limited by continued foundry supply constraints,” Seymore added.
Further, “In EESC [enterprise, embedded and semi-custom], we expect a somewhat smoother game console cycle than prior cycles,” the analyst said. “In servers we look for continued growth in both the company’s existing Rome business, as well as commentary on customer engagement with its new EPYC Milan products.”
Bottom line: “Overall, we expect another solid quarter from AMD, as the company is firing on all cylinders,” Seymore said.
“Nevertheless, we maintain our hold rating/$90 price target” on valuation concerns.
Advanced Micro Devices traded Thursday at $80.10, down 1.8% and has firmed 1% in the last six months.
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