As previously reported, Morgan Stanley analyst Joseph Moore upgraded AMD (AMD) to Equal Weight from Underweight and raised his price target for the shares to $28 from $17.
Stating that he still remains concerned that consensus forecasts for AMD in the second half of 2019 are too high, Moore acknowledges that "being cautious on the stock has obviously been the wrong call."
Given that Intel's (INTC) comeback is "at best deferred" and Nvidia's (NVDA) investment in ray tracing will have a longer-term payoff, Moore tells investors that he now thinks the 2018-19 opportunity sets the table for a period of sustained profits for AMD.
He also said he expects AMD to announce a cloud gaming partnership with Microsoft (MSFT) at the E3 event next week.
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