Advanced Micro Devices rises as Baird upgrades after 'strong reception' to Genoa launch
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Advanced Micro Devices (NASDAQ:AMD) shares rose on Monday as Baird upgraded the semiconductor company after channel checks showed "strong reception" for its recently announced Genoa server offering.
Analyst Tristan Gerra raised his rating on AMD (AMD) to outperform from neutral and raised the price target to $100 from $65, noting that data center original equipment manufacturers are shifting "significant resources" to support AMD. 
"Genoa's very significant performance step up should translate into an acceleration in market share gains for AMD in 2023, along with significantly higher pricing and a higher gross margin profile, reinforcing AMD's EPYC performance leadership for years to come," Gerra wrote in a note to clients. 
AMD (AMD) shares gained 3.5% to $74.90 in premarket trading.
In addition, Gerra noted that AMD's (AMD) management, led by Dr. Lisa Su, has been "bullish" on the company's opportunities over the next two years as servers continue to move away from Intel's (NASDAQ:INTC) Skylake processors, as "strong demand on cloud services in the past three years prevented some cloud OEMs from decommissioning and performing architecture refreshes."
Gerra also noted that AMD's (AMD) RDNA 3 GPUs could take away market share from Nvidia's (NASDAQ:NVDA) RTX40 series, as they can generate cost savings over Nvidia's offering, notable in an environment where the customer is seen as "price sensitive." 
The analyst also noted that demand for Xilinx products continues to "remain strong," with supply constraints and above seasonal demand going into the first-half of 2023.
Following its third-quarter results, investment firm Mizuho said AMD (AMD) has continued to see strength from its data center and gaming product lines, despite weakness in its PC unit.
Analysts are largely positive on Advanced Micro Devices (AMD). It has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a BUY. Seeking Alpha's quant system, which consistently beats the market, also rates AMD a HOLD.