Advanced Micro Devices rises as BMO upgrades, citing 'continued superior execution'
Advanced Micro Devices (NASDAQ:AMD) shares rose on Thursday as investment firm BMO Capital Markets upgraded the semiconductor company, noting that it has become a "sustainable computer franchise" thanks to "continued superior execution." 
Analyst Ambrish Srivastava raised his rating on Advanced Micro Devices (AMD) shares to outperform from market perform and bumped the price target to $115 from $100, noting that even though there are some "near-term headwinds," the company under Dr. Lisa Su, has transformed itself.
"There is no going back for customers to the old days of when AMD's share would be capped," Srivastava wrote, adding that they see "continued momentum from our work around the industry, and see AMD's server share continuing to expand."
Advanced Micro Devices (AMD) shares gained nearly 1% to $78.28 in premarket trading.
Despite the upgrade, Srivastava lowered earnings estimates to $4.30 per share and $4.68 per share for 2022 and 2023, but over the long-term earnings could hit $6.80 per share.
In addition, Srivastava noted that AMD's (AMD) non-PC business is offsetting the growing drag from the PC market and is continuing to make share gains from Intel (NASDAQ:INTC).
"Our sense is that with the several key architectural innovations the company has made, along with rolling out a lineup of products that has enabled the company to not only close the gap but get ahead in many cases, AMD's credibility with customers has continued to climb," the analyst wrote, adding that AMD is likely to keep gaining market share, especially in the data center.
The analyst also noted that as the market has sold off, AMD (AMD) shares now have a "favorable valuation" and look attractive from a risk-reward profile, as free cash flow margins and free cash flow per share continue to rise. The analyst added the company could generate as much as $9B in free cash flow by 2025. 
On Tuesday, investment firm KeyBanc Capital Markets lowered estimates on several semiconductor companies, including Advanced Micro Devices (AMD), noting that a correction in the semiconductor industry is "looming."

Analysts have been somewhat positive on Advanced Micro Devices (AMD). It had an average rating of BUY from Wall Street analysts, while Seeking Alpha authors are slightly less positive on it but still rate it a BUY. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates AMD a STRONG BUY.