Advanced Micro Devices (AMD) shares jumped more than +3%, following a hike in price target by Morgan Stanley analysts.
The analysts at Morgan Stanley raised their price target on the semi-conductor company’s stock to $32 from $30.
According to the Morgan Stanley analysts, AMD is likely to gain market share in every business segment next year, positioning itself as a strong competitor to both Intel and Nvidia, while spending a fraction of the R&D (research and development) that those two companies spend.
Enthusiast desktop, servers for the largest scale cloud service providers, and data center graphics, primarily in cloud gaming are areas that the analysts expect AMD to gain the most from.
While the analysts indicated that AMD should see gains in notebooks, on the back of a 7 nanometer-chip launch early next year, they also added, "But we have seen historically that it can take the mobile business longer to ramp."