Advanced Micro Devices rises as Stifel starts at buy, sees 'expanding IP portfolio'
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Advanced Micro Devices (NASDAQ:AMD) shares rose on Thursday as investment firm Stifel started coverage on the semiconductor company, noting strong execution and an "expanding IP portfolio."
Analyst Ruben Roy initiated coverage on AMD (AMD) with a buy rating and a $122 price target, implying some 40% upside from current levels, noting that the Dr. Lisa Su-led company has gained share from Intel (INTC) in both the PC and server markets with more to come.
"Looking ahead, we believe that AMD's expanded IP portfolio and the ability to offer platform solutions will likely emerge as a competitive advantage," Roy wrote in a note to clients.
The analyst added continued gains in the overall total addressable market for computing, especially in the hyperscaler and cloud markets is likely to "create continued opportunities for faster than historical growth for the leading processor suppliers." 
AMD (AMD) shares gained more than 2.5% to $81.83 in mid-day trading.
In addition, Roy noted that AMD (AMD) is executing well on its current product roadmap, including its recent announcement of its Zen 4 based Ryzen 7000 series CPUs.
And with the recent Xilinx acquisition, along with continued growth in core end markets, AMD (AMD) could grow its total addressable market to $300B, with Roy expecting "above-market growth and expanding profitability" for the next several years.

Last month, UBS said both Nvidia (NVDA) and Advanced Micro Devices (AMD) have seen "consistently lower pricing" for their GPUs over the past few months, but the rate of decline has slowed down.