Goldman Upgrades to Buy on Valuation as AMD Increases

AMD “presenting a compelling opportunity, with a possibility to participate in a multiyear share gain and margin expansion story”, said Goldman, upgrading the stock.

Based on the AMDs valuation is how Goldman’s analysts acted. The stock has dropped 13% since Sept. 1. Recently it traded at $80, up 4.5%. It had risen 4% year to date through Tuesday.

Goldman analysts lifted their share-price target to $96 from $84.

The recent slide “presents a compelling opportunity to participate in what we expect to be a multiyear share-gain and margin-expansion story,” the analysts wrote in a commentary cited by Bloomberg.

The ongoing slide "presents a convincing occasion to partake in what we hope to be a multiyear share-gain and margin extension story," the analysts wrote in an editorial cited to by Bloomberg.

Goldman's research focuses to "solid [personal-computer] basics" through the principal half of one year from now and "design win/share gain energy [for AMD] in the customer and business PC space," Goldman said.

Morningstar analyst expert Abhinav Davuluri additionally communicated enthusiasm for AMD after its income report a week ago and updates on its consent to purchase chipmaker Xilinx (XLNX).

“We are raising our fair value for AMD to $67 per share on a probability-weighted basis,” is what he wrote in a commentary.

“We assess AMD’s stand-alone fair-value estimate at $57 per share, up from our prior $31 estimate.”

As for Xilinx , “we like the deal for AMD, as it is using its rich shares to fund the deal,” Davuluri commented.

“We view this deal as a way for AMD to bolster its product portfolio with the leading FPGA (field-programmable gate array) franchise to drive growth and better diversify its revenue, as Xilinx products are complementary to AMD.”