Mizuho is not playing nice by agreeing with bullish investors of Advanced Micro Devices (NASDAQ: AMD) stock. The firm followed Goldman’s reiterated "sell" call and $10.40 price target, along with Morgan Stanley’s downgrade to "underweight” on AMD stock. Mizuho expressed concern that companies like AMD should shift their focus from cryptocurrency mining to data center and PC markets.
The bearish call is unusual but in-line with trading on AMD stock. Bearishness is rising as short-float rose by $2 billion worth of shares. But Mizuho’s negativity for Nvidia (NASDAQ: NVDA), which sent the stock down below $200 last week, and AMD is unusual. Nvidia is already targeting the super-computer, AI, and self-driving markets. The GPU market is still growing profitably and is a core business for Nvidia. It developed a crypto-specific mining chip but that market is secondary for Nvidia.
AMD already planned its addressable market expansion in the server, notebook, and PC market. Its Ryzen chip now targets the notebook and in the PC market, the budget, mainstream, and high-end market.
Neither company needs to listen to Mizuho’s comments. As 2018 approaches, both companies will grow in the PC, corporate, and back-end cloud and data center markets.
