Advanced Micro Devices shares slip despite Morgan Stanley restarting coverage

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Advanced Micro Devices ($NASDAQ:AMD) shares slipped on Wednesday even as investment firm Morgan Stanley restarted coverage on the semiconductor company, noting it is in a position to gain market share in both cloud servers and PCs. In a note to clients, Moore said that while competition from Intel (INTC) in the server market remains a risk, he believes that AMD is “poised to meaningfully increase its server MPU microprocessor unit market share” given the company’s recent product launches. He also sees potential for AMD to gain share in the PC market as it launches new chips based on its “Zen” architecture. “We see significant long-term upside for AMD shares as the company takes market share in both servers and PCs,” Moore wrote.

VI Analysis

Advanced Micro Devices (AMD) is a company that designs, manufactures and sells semiconductor products, including microprocessors, chipsets, GPUs and other related technology. The company’s fundamentals reflect its long term potential, and the VI app makes it easy to see this. The VI Star Chart shows that AMD is strong in terms of assets, profitability and growth, but weak in terms of dividends. AMD has a high health score of 8/10 with regard to its cashflows and debt, indicating that it is capable of sustaining future operations in times of crisis. AMD is classified as a ‘gorilla’, a type of company that has achieved stable and high revenue or earnings growth due to its strong competitive advantage.

Summary

At the right price, it is suitable for those who want to invest for high capital gains. However, high growth companies are deemed more risky as they attempt to grow faster.