Advanced Micro Devices shares got designated as a “top catchup candidate” by Bank of America. Bank of America analyst Vivek Arya has a buy rating and $135 price target on the semiconductor company’s shares.
The analyst noted that AMD has the strongest upward earnings-per-share revisions among chipmakers and “a clear path” to doubling EPS to about $5 per share. According to Arya, AMD shares are trading at a substantial discount to its competitors.
Arya expects AMD to gain market share from Intel , as the latter focuses on expanding into the noncore foundry market.