Advanced Micro Devices got a price target boost from an analyst at RBC Capital Markets.
Analyst Mitch Steves at RBC increased his price target on the semiconductor company’s stock to $53 from $50 a share. Steves maintains an outperform rating on the shares.
Steves cited improving data center demand and AMD's optimism on margin ramps through 2020. The analyst expects AMD earnings to come in at earn $1.30 a share in 2020, which is higher from his prior forecast of $1.24. Wall Street is expecting earnings of $1.10 a share in 2020. For 2021, Steves now projects earnings of $1.73 a share (compared to previous forecast of $1.68 ); the Street expects $1.51 .
The analyst mentioned "solid channel checks" for both gaming chips and products used in data centers as factors behind his solidly optimistic earnings outlook on AMD. According to the analyst, higher data center demand and better-than-expected gaming sales (as he expects) should lead to higher gross margins relative to current Street expectations.