Advanced Micro Devices (AMD): New Products Selling Well But Still No Upside

Lehman believes AMD (AMD), is showing strength coming off the release of its new graphics processors. But the firm still doesn’t like the stock.

AMD — Solid 2Q Trends To Date:

  • Trends in a back-end loaded June quarter have tracked broadly in line to date with new products in servers (Barcelona), notebooks (Puma) and graphics (RV770) now helping the 3Q outlook.
  • With an “Asset Smart” deal still targeted for 3Q, we believe these elements may help support investor sentiment.

Lehman maintains EQUAL WEIGHT on AMD given a “strained balance sheet and ongoing losses in an uncertain macro environment”, but ups $9 target to $9-$10.

See Also:
NVIDIA (NVDA) Weathering Competition
NVIDIA (NVDA): Limited Near-Term Upside (NVDA, AMD)
NVIDIA (NVDA) Long-Term Promise Outweighs Near-Term Share Loss and Inventory Concerns


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