By Benjamin Pimentel
Advanced Micro Devices Inc. (AMD) on Monday won an analyst
upgrade at FBR Capital Markets, which cited the chip giant's "cash
generation potential" and signs of improving demand in personal
computers.
Shares of AMD were up 3% at $4.12 following the upgrade.
"We are putting our money where our mouth is and are upgrading
AMD to outperform from market perform," analyst Craig Berger wrote
in a research note.
Berger said he expects the Sunnyvale, Calif., semiconductor
maker on Tuesday to report strong second-quarter results and
comments about the outlook for its third quarter.
Analysts current expect the chip company to report a loss of 49
cents a share on revenue of $1.13 billion, according to a survey by
FactSet Research.
Berger cited indications of rising demand for PC chips, saying,
"Our new distributor checks suggest Asian distributors had a
stronger-than-expected June quarter and are more positive about
third-quarter shipment prospects."
He also said Intel's "stellar results" and third-quarter revenue
projection "suggest meaningful upside for AMD."
Intel Corp.'s (INTC) second-quarter results have raised hopes
that the semiconductor industry might have an upbeat second half of
the year. Other major chip makers, including AMD and Texas
Instruments Inc. (TXN), report financial results this week.
-By Benjamin Pimentel; 415-439-6400;
AskNewswires@dowjones.com