Advanced Micro Devices upgraded at Bernstein, firm sees 30% upside
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Advanced Micro Devices (NASDAQ:AMD) shares were higher on Tuesday, as investment firm Bernstein upgraded the semiconductor maker, noting the firm has made vast improvements over the years.
Analyst Stacy Rasgon raised his rating to outperform and put a $150 price target on the stock, implying some 30% upside, noting that the Dr. Lisa Su-led AMD has changed significantly since the firm last had an outperform rating on the stock nearly 10 years ago.
"But time heals all wounds, and (as has frankly been abundantly clear for years) this is not the AMD of a decade ago," Rasgon wrote in a note to clients. "And with the combination of continued stellar execution, increasingly bankable earnings power, and a recent sizeable pullback making valuation (dare we say?) downright attractive we are, for the first time in almost a decade, pulling the trigger."
AMD shares were slightly higher in premarket trading on Tuesday, trading at $113.95.
In addition, Rasgon noted that AMD is continuing to gain market share in areas such as client, server, graphics and consoles. AMD has gained notable amounts of share in notebook and servers and given the fact the semiconductor industry is still supply limited rather than demand limited, it "looks even better on a revenue basis."
Rasgon also noted that AMD's product portfolio is on par with Intel's (NASDAQ:INTC) and the company is gaining share every quarter, a phenomenon that isn't likely to slow down anytime soon. 
"Intel's recent commentary at their analyst day last week suggests the next several years may be open season in datacenter," Rasgon explained, adding that Intel is working on improving its server chips, pushing Granite Rapids to 2024 from 2023, acknowledging that the Intel 4 process is better than Intel 3 and the old roadmap was uncompetitive. 
"However, this also means that the next several years are likely open season for AMD, with Intel acknowledging likelihood for continued share losses to their smaller competitor at least through 2023," Rasgon continued. "We suspect AMD will take as much share as they can manage to supply."
AMD was listed as the second-most bought stock by retail investors since January 2019, according to data compiled by Goldman Sachs.