Advanced Micro Devices stock can go much higher even after its big rally, Cowen argues, due to the chip maker’s potential share gains in the notebook market. Its valuation, however, has the firm’s analyst “nervous.”
AMD (ticker: AMD) makes processors that act as the main computing brains for personal computers, servers, and graphics cards. The company’s stock rose 148% last year—the best performer in the entire S&P 500 index for 2019, according to FactSet. The shares were already up another 11% this year through Friday.
On Monday, Cowen analyst Matthew Ramsay reaffirmed his Outperform rating for AMD shares. He also raised his price target for the stock to $60 from $47.
“With shares up 65% since our last preview, we are increasingly both confident (in fundamentals) and nervous (on valuation),” he wrote. “AMD has now showcased a track record of consistent roadmap execution and stability while offering premier technological specs and TCO [total cost of ownership] to customers seeking a viable x86 alternative to Intel [INTC].”