AMD stock receives Buy rating from Stifel
AMD shares are moving higher after Stifel initiated coverage on the stock with a Buy rating.
Video Transcript
SEANA SMITH: My play today is AMD. Stifel initiating coverage on the stock with a buy rating and $122 price target, saying that it is the best bet of the three major US chip companies. Stifel bullish on AMD's, quote, "momentum in data center enterprise and with PC manufacturers" and expects a, quote, "rapid cadence of new product introductions" and its evaluation call as well. Analyst there Reuben Roy noting that AMD's valuation is less than 20 times next 12 month earnings, so it's an attractive, given the growth potential that Stifel sees in this stock.
Dave, it's been interesting to see how the chip names have traded especially over the last month since we saw the passage of the CHIPS Act. Yes, it's a huge move here for the industry. Yet we haven't really seen that excitement in some of those bigger names just yet.
DAVE BRIGGS: Yeah, not even the last month. When you look at the last week as far as their relationship with the federal government goes, it's been an interesting up and down because earlier this week, it was AMD and Nvidia who were both told they had to ban the sale and shipment of certain AI chips to China, which both held back their stock and boosted their Chinese competitors, and then just a couple of days later, got news of the US government implementing that $50 billion CHIPS Act. So a bit of a give and take there, but ultimately, probably that CHIPS Act should be a catalyst in the long run. A lot of money coming their way and some new factories as well.
