- Citigroup analyst Christopher Danely upgraded Advanced Micro Devices Inc AMD to Neutral from Sell with a price target of $95, up from $17, implying an 8.5% upside.
- Danely's channel checks suggested that AMD share gains were finally accelerating in the server market, especially at hyper-scale companies like Amazon.com Inc's AMZN, Amazon Web Services, and Alphabet Inc's GOOG GOOGL Google.
- He expects the momentum to continue.
- Danely also sees a possible contraction in Intel Corp's INTC gross margins to the '40s, akin to AMD's last product cycle.
- He raised estimates on AMD and recommended a pair trade of overweight AMD and underweight Intel.
- Price action: AMD shares traded lower by 1.94% at $87.32 on the last check Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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