Improving U.S.-China trade tensions and competitor price cuts in the rear view now position hot chip stock Advanced Micro Devices to continue its impressive stock rally, according to Mizuho Securities.
The firm upgraded shares of AMD, the best performing stock in the S&P 500 last year, to buy from neutral and hiked its price target to $55 per share from $38 per share, sending the chip stock up 2.4% to $48.97 per share on Thursday.
"We see the 2020 server market could be stronger than current muted consensus," said Mizuho Securities analyst Vijay Rakesh in a note to clients on Wednesday.
Semiconductor company AMD rallied nearly 150% in 2019, making it the top company in the 500 stock index last year. But Mizuho missed out on the end of AMD's rally on fears that aggressive price cuts from Intel would take market share in the chip industry. With the price cuts in the past and a phase one trade deal between the U.S. and China, AMD is set up for another big year, said Rakesh.
