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Intel's 'Strategic Faux Pas' Could Be AMD's Gain Says Northland Capital Analyst

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Priya Nigam
·1 min read
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Advanced Micro Devices, Inc. (NASDAQ: AMD) could benefit from Intel Corporation’s (NASDAQ: INTC) “strategic faux pas” to try to reenter the foundry business, according to Northland Capital Markets.

The Advanced Micro Devices Analyst: Gus Richard upgraded the rating for Advanced Micro Devices from Market Perform to Outperform, while raising the price target to $96.

The Advanced Micro Devices Thesis: Taiwan Semiconductor is unlikely to relinquish its manufacturing lead to Intel “any time soon,” Richard said in the upgrade note.

“We believe that Intel's commitment to re-entry into the foundry market and maintain leading-edge manufacturing capacity makes it a low priority at TSMC,” the analyst wrote. On the other hand, Advanced Micro Devices is a preferred customer for Taiwan Semiconductor as all its leading-edge volume is produced at Taiwan Semiconductor, he noted.

“INTC expansion into the foundry market will increase AMD as a priority for TSMC and INTC will be persona non grata,” Richard said. “For this reason, we expect AMD's market share momentum to continue,” he added.

AMD Price Action: Shares of Advanced Micro Devices are up 0.039% to $76.51 at the time of publication Thursday.

(Photo: Paul Sakuma Photography via AMD)

Latest Ratings for AMD

Mar 2021

Northland Capital Markets

Upgrades

Market Perform

Outperform

Jan 2021

Mizuho

Maintains

Buy

Jan 2021

Loop Capital

Maintains

Buy

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