UPDATE - Canaccord Genuity Upgrades AMD (AMD) to Buy; Expected Share Gains and Additional Upside

UPDATE - Canaccord Genuity upgrades AMD (NYSE: AMD) from Hold to Buy with a price target of $8.00.

Canaccord analyst, Bobby Burleson, said, "While for some time we have considered an upgrade of AMD on its historically low market share and the likelihood of eventual share gains, we remained on the sidelines due to headline risk from declining forecasts for PC units, Intel’s (Nasdaq: INTC) lofty 2011 expectations which would need to be reset, and, more recently, order adjustments across the foundry and packaging landscape. While CEO replacement doesn’t appear imminent based on last night’s earnings call, share gains in notebooks in H2/11 and servers into 2012 do and compel us to pull the trigger. Bolstering confidence in our upgrade is a backdrop of more benign PC headlines following Intel’s reduced unit forecast Wednesday night and modest expectations for unit growth in AMD's Q3 guidance (we think they beat the number even if notebook builds weaken following back-to-school)."

"Revenue: Q3/11E increased from $1.700 billion to $1.731 billion; C2011E
increased from $6.697 billion to $6.763 billion; C2012E increased from $7.140 billion to $7.224 billion...EPS: Q3/11E increased from $0.15 to $0.18; C2011E increased from $0.51 to $0.62; C2012E increased from $0.70 to $0.88."

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