Advanced Micro Devices (NASDAQ:AMD)
After beginning coverage of the firm and assigning a buy rating to its stock the day before, investors in chipmaker Advanced Micro Devices (NASDAQ:AMD) were bidding up their shares Thursday.
Today, the share price of the semiconductor company increased by 4.8%, and as of 2:02 p.m. Eastern Time, it was up by 2.8%.
Ruben Roy, an analyst at Stifel, began coverage of Advanced Micro Devices (NASDAQ:AMD) yesterday and assigned a buy rating to the company’s shares and a price objective of $122. Roy pointed out that Advanced Micro Devices (NASDAQ:AMD) has a “solid product roadmap,” which is one reason the analyst is optimistic about the firm. Another reason is that Advanced Micro Devices (NASDAQ:AMD) has a diverse product selection.
In a note to investors, Advanced Micro Devices (NASDAQ:AMD) CEO Lisa Su Roy stated, “We expect AMD’s current momentum in data centers, enterprises, and tier-1 PC OEMs to continue as the company remains on a rapid cadence of new product introductions.” 
And despite the possibility of some short-term fluctuations in demand for chips, Roy anticipates that both the company’s gross and operating margins will continue to increase.
The fact that Roy believes that AMD’s present value “appears acceptable” was another positive development for investors.
This year, the stock of Advanced Micro Devices (NASDAQ:AMD), much like virtually every other technology company, has been highly erratic. The share price of the semiconductor manufacturer is down 42% so far this year, and it has dropped another 17% just this month alone.
Although Roy’s optimism over AMD’s stock may prove to be justified, long-term investors should be prepared for additional volatility in the short term because many investors continue to avoid investing in technology firms.
Investors are still concerned about high inflation, a potentially deteriorating economy in the United States, and concerns with the supply chain, all of which might continue to weigh on AMD in the near future.
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