Advanced Micro Devices, Inc. shares jumped nearly +6% Thursday, following a rating upgrade by Morgan Stanley.
Analysts at Morgan Stanley raised their rating on the semiconductor company to equal weight from underweight. They also upped their price target to $28 from $17. The analysts feel there are enough positive near-term tailwinds for AMD.
Morgan Stanley analyst Joseph Moore mentioned cloud gaming as a key strength for AMD. Morgan Stanley anticipates AMD to announce a gaming partnership with Microsoft.
According to Morgan Stanley, AMD will boost revenue growth from 12.2% to 21% in 2020. The bank also expects earnings per share to be up from 76 cents to $1.01, which is in line with consensus.