AMD could continue to eat Intel’s lunch, Barclays says as stock surges.


Shares of Advanced Micro Devices Inc. rose more than 6% in Monday morning trading after bullish on the chip name, with Barclays citing the possibility that AMD could continue cannibalizing Intel Corp.’s business.

Barclays analyst Blayne Curtis said AMD’s AMD
+7.92%
The Genoa and Bergamo platforms could propel the company to gain additional market share from Intel’s INTC.
+1.95%
cost. In a note to customers on Monday, Curtis upgraded AMD’s stock from equal weight to overweight.

AMD is now Meta Platforms Inc. It has a low share in META.
+1.88%,
According to Curtis, however, he expected AMD’s share to rise once Meta accelerates spending again. Intel “wouldn’t have an answer until Granite Rapids/Sierra Forest comes out,” Curtis continued. It is “scheduled for 2024, but more likely to arrive in 2025.”

Curtis was also bullish on Qualcomm Inc.’s stock, QCOM.
+5.11%,
I am writing that better trends may come from China.

“The handset market has undergone a correction since 2H21, but we see a softer guide to the Q123 as potentially the last major cut,” he wrote. “China’s reopening is a big topic for 2023 and we believe China’s headwinds could turn into headwinds in the second half of the year.”

Curtis is also optimistic about Qualcomm’s potential to see “sustained growth” in the Internet of Things, meaning the automotive category and connected devices.

“IoT is a broad category, and while cyclical headwinds continue, QCOM believes we can see long-term tailwinds from Edge Computing, ARM PCs, and AR/VR,” he noted, referring to augmented reality and virtual reality.

Curtis upgraded Skyworks Solutions Inc.’s stock SWKS.
+4.16%
Apple Inc. when transitioning from equal weight to overweight. AAPL
+1.90%
It brings WiFi 6E to iPad this year.

Skyworks stock is more than 4% ahead in Monday morning trading, as is Qualcomm stock.

At the same time, he worked for Applied Materials Inc. We lowered our rating for AMAT.
+1.60%
and KLA Corp. KLAC,
+0.81%
We underweight at equal weights, warning that the stock may have risen too much despite potential 2024 challenges from memory, foundry and logic.

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