Raymond James analyst Chris Caso raised Advanced Micro Devices Inc. stock price to Outperform (NASDAQ:) with a target of $160.00 per share.

The analyst sees a “highly attractive valuation” with AMD shares being down over 40% YTD. The AMD stock price has fallen to its lowest point in nine months.

“As we have become more concerned about cycle risks given potential for slowing consumer demand and elevated inventory levels at customers, we favor those semi companies with strong secular drivers, more muted cyclical exposure and attractive valuations, for which AMD appears well positioned. We have strong confidence regarding AMD’s position and share gains in the datacenter market,” Caso said in a client note.

On the fundamental side, the analyst expects to see AMD continuing to gain market share from Intel (NASDAQ:) as the roadmap of the latter is “not showing parity with AMD until at least the end of 2024.” In the data center sector particularly, market shares for AMD are “inevitable.”

Caso stated that AMD is being committed by customers to increase supply. Caso also stated that INTC and AMD will have a wider technology gap when Genoa is released in 4Q21.

PC is still the most dangerous area in terms of risks.

“We’re also concerned about the sustainability of XLNX revenue after what appears to be ~35% Y/Y growth for C22. But we do expect XLNX to be mildly accretive, and we note that just 1% of client share gain would offset a 5% decline in the overall market, demonstrating that share is a much more important lever for AMD than market growth.”

The AMD stock price rose 0.7% on Monday, pre-open.

By Senad Karaahmetovic