AMD Stock: $92 Price Target By RBC Capital

By Amit Chowdhry ● October 18, 2020
  • The stock price of Advanced Micro Devices, Inc. (NASDAQ: AMD) has recently received a price target increase from $84 to $92 by RBC Capital Markets analyst Mitch Steves. These are the details.

The stock price of Advanced Micro Devices, Inc. (NASDAQ: AMD) has recently received a price target increase from $84 to $92 by RBC Capital Markets analyst Mitch Steves. Steves also kept an “Outperform” rating on the stock.

“We are raising our (earnings) estimates on AMD, as we believe fundamentals remain strong for the firm,” said Steves in his report via The Street. “Our checks on gaming and data center suggest modest upside to numbers and will likely help quell fears around a weaker organic story, given the unconfirmed Wall Street Journal article stating AMD may purchase.”

Even though the stock price of AMD went down 0.57%, it is up 69.39% for the year-to-date and up 3,663.35% over the past five years.

AMD will likely receive many more price target updates around October 27, which is when the third-quarter earnings results will be announced.

“Our sense is that the set-up into earnings has improved, as some investors believe AMD is seeing weaker demand (hence the need to potentially purchase another data center company,” added Steves in the report. “We anticipate upside to gaming numbers, due to higher than expected demand; upside on PC CPUs, as well given the continued strength from WFH (work-from-home) initiatives… and steady share gains on the server-side.”

Steves also pointed out that the company is expected to see a “beat and raise” for the quarter with the high end of the range being around $2.65 billion. However, the gross margins at the company is not expected to “materially change vs. guidance” due to console sales seeing an upside.

“We are raising our estimates and price target on AMD due to healthy demand across all segments: gaming, PCs and data center,” explained Steves.

Disclosure: I have a small position of AMD in my stock portfolio.