AMD stock was on the rise Wednesday following news that a new analyst is covering the stock.
Instinet is now offering coverage of AMD (NASDAQ:AMD) stock and it started off strong by giving it a “Buy” rating. The new coverage of AMD stock also includes a price target of $33. The company’s stock was trading at $26.36 when the markets closed on Tuesday.
David Wong is the Instinet analyst that is covering AMD stock for the firm. He states that the “Buy” rating for the stock and strong price target are due to its unique position in the market. AMD makes both processors, as well as GPUs.
Wong notes that this gives AMD an interesting advantage over its other major rivals. This includes Intel (NASDAQ:INTC), which focuses on processors. The other big rival for the company is Nvidia (NASDAQ:NVDA), which is a maker of GPUs, reports MarketWatch.
“We forecast AMD’s reported GAAP EPS will climb through 2019 and rise meaningfully in subsequent years from roughly breakeven in the March 2019 quarter,” Wong said in a statement obtained by CNBC.
At the same time that he initiated coverage of AMD, Wong also started coverage of Intel. This has him giving INTC stock a “Buy” rating and a target price of $65. INTC was trading at $54.51 at closing yesterday.
AMD stock was up 10%, INTC stock was up 2% and NVDA stock was up 3% as of noon Wednesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.