Bullish options flow was detected in AMD stock on January 2, 2020.
The bullish options flow was likely caused by analysts price target hikes for AMD stock.
Nomura Instinet analyst David Wong raised his price target on AMD to $58 and kept his Buy rating, saying the company should continue strengthening its competitive position in 2020 with a “steady stream” of new product launches in in the 7nm and 7nm+ technologies. The analyst further cites his expectations for AMD’s continuing market share gains, average sales price increases, revenue growth, and increasing operating leverage.
On December 31, 2019, Rosenblatt analyst Hans Mosesmann noted that AMD shares are up nearly 147% year-to-date but he views 2020 as a year in which the company will continue its early momentum in CPU share gains and he sees “limited competitive threats slowing the momentum” for the upcoming new 7nm mobile Ryzen chip. Given that he sees a strong back half of 2020 coming on the early ramp of new game consoles from both Microsoft (MSFT) and Sony (SNE), Mosesmann believes AMD is poised for multiple expansion, leading him to raise his price target on the shares to $65 from $52. He maintains a Buy rating on AMD.
Back on December 20, 2019, Wedbush analyst Matt Bryson raised his price target on AMD (AMD) shares to $51.50 from $39.00 as he is increasingly confident in his 2021 estimates given that AMD continues to execute and Intel (INTC) continues to struggle. As evidence of the former point, Bryson points to review sites’ “ubiquitously positive” take on Threadripper’s launch last month, and to support the latter the analyst notes conversations with Intel customers and contemporaries since November that “have drawn a picture of Intel’s shortages worsening.” Bryson keeps an Outperform rating on AMD shares.