AMD named top pick at Piper Sandler

Shares of Advanced Micro Devices (AMD) popped on Thursday. Piper Sandler analyst Harsh Kumar named the stock as a top pick in the large-cap space. He cites a number of factors, including the competitive positioning of its MI products, and says that he sees AMD "as having bright prospects moving into the back half of the year." Kumar has an Overweight rating and $175 price target on the stock.

Yahoo Finance's Josh Lipton and Julie Hyman discuss the call in the video above.

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This post was written by Stephanie Mikulich.

Video transcript

All right, let's get to our call of the day.

Now, Piper Sandler naming a MD, it's top pick in a large cap space.

So this is Piper's harsh Kumar uh decides Lisa Sue's company is a top pick in the large cap space heading into the second half of the year.

Apparently, Julie, he met with the management team says he walked away, extremely impressed with the strategy as well as the competitive positioning.

We feel there are additional tail winds.

He says set to come for both the server and PC business says A and D looks to have bright prospects moving to the back half.

Yeah, so bright that he boosted that price target to 175 although it's not that far from 175.

Now, especially after this gain that we're seeing on the back of this uh of this analyst call a couple of things that he talks about.

He says that the company in the first half of this year had been constrained with the delivery of its Accelerators, its A I Accelerators um because of supply issues, but he thinks that will alleviate, he also expects them to take share from Intel in the server market, which is quite interesting.

He says A MD will take 5 to 6% of share from Intel this year.

Um So, and their share of the server market is already about 33%.

So those are a couple of the reasons behind uh that call for harsh and for in valuation.

No surprise thing to let's retract here says we like A and D's valuation here relative to peers in the compute space.

So continues with an overweight.