AMD Climbs on Upgrade

Advanced Micro Devices (NASDAQ:AMD) advanced Monday following an upgrade to overweight from equal weight by Barclays.

Analyst Blayne Curtis set a price target that implies a 21.3% upside from where the stock closed Friday. Despite anticipating another quarterly slide for personal computer demand, he said the company will be helped by continued server leadership and opportunities in artificial intelligence and direct current technology.

Said Curtis, "It would have been nice if the group got as cheap as we have seen in other downturns, but we underestimated the amount of money that wanted to move into semis and we don’t see the group testing October lows.”

Delving further, Curtis noted that the capital expenditure outlook for the cloud could be soft in the first-half of the year, but there could be a second-half acceleration both in the U.S. and China, due in part to generative AI, thus benefiting AMD.

Last week, the company announced that its adaptive computing technology is powering leading mobility supplier DENSO Corporation’s next-generation LiDAR platform. The new platform will enable over 20X improvement in resolution with extremely low latency for increased precision in detecting pedestrians, vehicles, free space and more. The DENSO LiDAR platform, targeted to begin shipping in 2025, will leverage the AMD Xilinx Automotive (XA) Zynq UltraScale+™ adaptive SoC and its functional safety suite of developer tools to enable ISO 26262 ASIL-B certification.

AMD shares popped $4.66, or 6.7%, to $74.73.