Advanced Micro Devices a Top Stock for 2023

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A sign of AMD is seen at the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai

Shares of tech giant Advanced Micro Devices (AMD) were crushed this year.

After starting the year around $151, it sank to a low of about $57.  All thanks to broad market weakness, inflation, fears of recession, price target cuts, plunging PC demand, you name it.  That’s the bad news.  The good news is the future looks far brighter for AMD.

For one, it appears the worst has been priced into the stock.  And despite challenges, the company is still growing sales by double-digits.

Two, Warren Buffett’s Berkshire Hathaway just bought $4 billion worth of Taiwan Semiconductor.  That news is adding to hopes the chip business is at or near a bottom.

And, as noted by Barron’s: “In particular, it’s a vote of confidence from a major investor that Taiwan Semiconductor isn’t under threat from a potential Chinese invasion of the self-governing island of Taiwan—and the knock-on effect that would have for its customers. The company is a major supplier to Advanced Micro Devices, Qualcomm, and Nvidia.”

Three, analysts seem to like the AMD stock on the pullback, too. UBS upgraded AMD to a buy rating, with a price target of $95 a share.  Baird analyst Tristan Gerra also just upgraded the beaten-down tech name to outperform with a price target of $100.  He believes the company’s newest Genoa chips could widen the company’s competitive moat.

Also, Credit Suisse has an Outperform rating on the AMD stock, with a price target of $90 a share. He anticipates seeing even greater server share gains and cloud market growth.