Advanced Micro Devices, Inc. (NASDAQ: AMD) stock after analysts at Stifel upgraded the stock to buy from hold. The analysts, led by Kevin Cassidy, believes that AMD shares have been oversold due to concerns about the amount of revenue the company generates from cryptocurrency mining and the prospect of other mining solutions gaining popularity. Further, Bitmain Technologies said recently that it was coming out with a custom chip for crypto mining, an announcement that led to more selling of AMD shares.
As per the analyst Kevin Cassidy , the pent-up demand, as reflected by inflated retail costs for GPU cards, and the need to restock inventory channels due to limited supply are likely to continue to boost GPU shipments, despite the potential for softer cryptocurrency demand. AMD expects that crypto-currency based revenue accounted for a mid-single digit percentage of total FY2017 revenue. Cassidy also recommends owning AMD shares before the company begins ramping up revenue for its Epyc server processor later this year. He has set a target price on the stock of $13. As per the analysts’ consensus, the earnings that will reported on 7th May will post earnings per share of $0.06, which will be up by 185.71 % or $0.13 from last year’s $-0.07 per share.
Meanwhile, AMD Ventures, the venture capital arm of US-based chip maker Advanced Micro Devices Inc. (AMD), is raising an India-focused technology fund with a targeted corpus of close to $200 million. This will be an offshore entity and will operate from either Singapore or Amsterdam. The fund will follow the foreign direct investment (FDI) route to invest in technology-focused companies in India. Till now AMD ventures has invested in companies such as US-based Bluestacks, which is a cloud-based cross-platform products start up, and US-based InContext Solutions, a technology and market research platform, Tango, a free mobile messaging application provider.
On the other hand, Advanced Micro Devices Inc. and Nvidia Corp, both shares were down due to the threat from Bitmain Technologies Ltd. The Beijing-based hardware maker just began sales of a more powerful new product for Ethereum mining. Although AMD had seen a sales boost as cryptocurrency miners bought up their graphics processing units to solve complex calculations in an attempt to win digital tokens.