AMD stock gains after Wells Fargo upgrade

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Wells Fargo analyst Aaron Rakers upgraded shares of Advanced Micro Devices Inc. to overweight from equal weight Friday, writing that the company’s gains in high-performance computing are “underappreciated” even as the broader narrative of AMD share gains is well known. “While AMD’s success at hyperscale cloud vendors is the most visible and meaningful volume driver, we think the company’s impressive, and we believe somewhat underappreciated, traction within high-performance computing (HPC / supercomputing) has been an important positive validation of the company’s architectural positioning / roadmap execution,” he wrote in a note to clients. His research found about 30 large supercomputing systems or HPC systems based on AMD’s Epyc processors that have been announced over the last few years, noting that “many systems go unannounced.” He has a $100 price target on the stock, which is up 2.3% in Friday trading. Shares have gained 85% so far this year as the S&P 500 has risen 8.6%.
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