Wedbush Assumes Coverage on AMD (AMD) at Outperform; Remains Very Relevant Player in Computing Market

Wedbush assumes coverage on AMD (NYSE: AMD) with an Outperform (from Neutral). PT $9.

Wedbush analyst says, "While we believe the uncertain macro outlook will likely weigh on the stock in the near-term, as we look beyond these industry wide challenges, we think investors are underestimating AMD’s relevance to the computing market and improving financial model. We believe discrete GPU’s will likely not be cannibalized by Sandy Bridge (Nasdaq: INTC) as graphics become an important differentiator for PC OEMs/ODMs. We also look for AMD to benefit from (1) share gains in servers and the pervasive trend of cloud computing and (2) increasing silicon content in notebooks and desktops from the up sell of APUs and discrete GPU’s driving Y/Y improvements to AMD’s earnings, revenue, GM, and FCF into 2012."

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

Shares of AMD closed at $6.18 yesterday.

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