After a pullback of nearly 15% in the past three days, Rosenblatt analyst Hans Mosesmann advised investors to purchase the shares in Advanced Micro Devices Inc. (NASDAQ:).

AMD shares fell sharply after Blayne Curtis (Barclays analyst) downgraded AMD to Overweight from Equal Weight. He also set a $115.00 target for share prices, down from $148.00.

Curtis stated in a client letter that AMD still appears to be positioned to win share in the server and client markets. “Where we have issues is 2023. We see cyclical risks across many end markets (PC and Gaming and broad-based/XLNX).” Curtis added.

Mosesmann, however dismissed such concerns saying:

1. Mosesmanns check shows that AMD has not fallen short of its +30% y/y growth target for 2022.
2. We are still waiting to see if AMD and Intel offer aggressive pricing for PC CPUs.
3. AMD will continue to dominate the PC CPU market;
4. AMD will gain significant market share in data centers, according to Mosesmanns’ buy thesis.
5. Intel’s ability to defend its server share at any cost is limited.
6. Intel is not in a position of cutting prices due to margin pressures
7. The AMD foundations today are stronger than when they entered the year.

Mosesmann stated emphatically, “We are buyers.”

Today, AMD shares are down 2.1%

By Senad Karaahmetovic