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Loop Capital thinks Advanced Micro Devices can rally from current levels and take advantage of Intel’s troubles and gain ground in the desktop and sever markets. Analyst Gary Mobley initiated coverage of the semiconductor company with a buy rating and $175 price target, which implies shares can jump 49.2%. Mobley pointed out that AMD shares vastly underperformed the PHLX Semiconductor Sector index last year and are trading more closely with companies more exposed to markets such as PCs and smartphones. The SOX index rose nearly 20% in 2024, while AMD fell 18%. This only increased the analyst’s conviction on the stock, however. “Given this low investor sentiment, and given the relatively low valuation, we like the risk reward for the shares,” Mobley said. AMD 1Y mountain AMD stock performance. “AMD is at the cross-section between the changing system hardware architecture of general-purpose compute and accelerated compute,” Mobley said in a Monday note to clients. “Our view is that AMD will prove more triumphant in these market shifts versus what the equity markets seem to give the company credit for.” AMD could also come out on top of competition and exploit Intel’s struggles to accelerate market share gains in the PC and CPU-based general server markets, according to the analyst. His base case scenario for the stock suggests AMD will grab further market share from Intel in the x86 CPU market — which Intel dominates — by 2028 in PCs and general servers. The stock rose slightly in the premarket following Loop Capital’s call. Analysts are mostly bullish on the stock. LSEG data shows that 40 of 53 who cover the chipmaker rate it as a buy or a strong buy. The average analysts price target also implies more than 50% upside. To be sure, AMD has gotten off to a rough start this year, losing nearly 3% in 2025 thus far.
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