Nomura Securities Reiterates a 'Buy' on AMD (AMD); Inflection Point in Q3

Nomura Securities reiterates a 'Buy' on AMD (NYSE: AMD).

Nomura analyst, Romit Shah, says, "We believe many investors are on the fence on AMD, seeing earnings power of $1.00+ but at the same time cautious on PC demand and skeptical of share gains. Although we share these concerns, we believe consensus is under-estimating the impact of mainstream notebook offering Llano on ASPs and gross margin. We see an inflection point in Q3, and AMD overall generating as much as $0.80 in 2011 and $1.10 in 2012. Valuation at 1.0x EV/sales is attractive in our view relative to a trough of 0.7x and Intel (Nasdaq: INTC) and Nvidia (Nasdaq: NVDA) at 2.5x."

For more ratings news on AMD click here and for the rating history of AMD click here.

Shares of AMD closed at $8.90 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• UBS Reiterates Buy Rating on NVIDIA (NVDA), Expects Q2 Revenue Beat
• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Pro Diversity Network (IPDN) Reports Q2 Loss of $0.15