SoundView upgraded Advanced Micro Devices (AMD ) to outperform from neutral.
Analyst Hans Mosesmann says the risk/reward ratio is quite good given that the Athlon 64 product launch will likely be successful, and garner design win momentum in September. He says Says the high-density NOR flash (used predominantly in mobile phones), which comprises 30% of Advanced Micro's sales, will likely enter a shortage by the end of 2003.
Mosesmann views rival Intel's earnings preannouncement as a sign of recovery in the consumer and enterprise end markets, given the broad-based nature of strength in processor products: servers, desktops, and notebooks. He says this is positive for Advanced Micro.
He raised the $13 target to $17. Mosesmann also sees a $1.25 2003 loss per share, and an 11-cent loss per share in 2004.