AP
Ahead of the Bell: AMD
Thursday June 21, 9:16 am ET
Advanced Micro Devices Shares Jump in Premarket Session After Analyst Upgrades to 'Buy'
NEW YORK (AP) -- Shares of chip maker Advanced Micro Devices Inc. jumped in premarket trading on Thursday after an analyst upgraded the stock, and suggested
the company has regained market share from rival Intel Corp.
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Stifel Nicolaus analyst Cody Acree upgraded the stock to a short-term "Buy" from "Neutral," and set a $17 price target on it.
"We believe the first-quarter's underperformance was not representative of AMD's true end demand and that second-quarter revenue will likely recover a portion of first-quarter's shortfall," Acree wrote in a client note.
Acree also thinks the Sunnyvale, Calif., company has regained one or two percentage points of market share, and believes second-quarter sales will exceed the consensus estimate for 1.5 percent sequential growth.
In April, the company forecast second-quarter sales would be flat or slightly higher. Analysts expect, on average, a second-quarter loss of 85 cents per share on $1.25 billion in revenue,
AMD is scheduled to host an analyst day on Thursday, July 26.
AMD shares traded at $13.88 in the premarket session, up 24 cents from Wednesday's closing price of $13.64. Shares of Santa Clara, Calif.-based Intel traded at $23.91, down 3 cents from Wednesday's closing price of $23.94.
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