Tech giant and computer chip maker Advanced Micro Devices Inc (NASDAQ:AMD) raced up over 6% in New York to US$10.92 on Monday as the share was boosted by analyst comments.
Broker Macquarie upgraded the firm, which works with some of the biggest computer and phone makers around, to 'neutral' and hiked the target price to US$11 from US$10 previously.
Analyst Srini Pajjuri reckons AMD will be able to lift average selling prices (ASPs) for its graphics processor units (GPUs) and generate some momentum for its server business.
One of the group's semiconductors is used in Apple Inc’s (NASDAQ:AAPL)new iMac Pro, and it is working with processing titan Intel Corp (NASDAQ:INTC) on a new laptop chip to power gaming notebooks.
“We expect a gradual revenue ramp, and won’t be surprised to see AMD gain 5 – 10% unit share in the next one to two years,” Pajjuri wrote.
“Additional gains will depend on the company’s future roadmap and execution, and we believe it’s too soon to give the company the benefit of the doubt given Intel’s strong product portfolio and entrenched position.”