DA Davidson upgrades AMD to Buy after big Intel beat

DA Davidson upgraded AMD (AMD) to Buy from Neutral with a price target of $375, up from $220. The stock in premarket trading is up 12% to $343.17. The firm cites the “structural increase” in central processing unit demand and “much improved” visibility into AMD’s role in the data center buildout for the upgrade. Given the magnitude of Intel’s (INTC) Q1 beat, there is “meaningful upside” to AMD’s estimates when it reports on May 5, the analyst tells investors in a research note. DA says CPUs are “reinserting itself as an indispensable foundation of the AI era.” The firm views Intel’s results as a “precursor for a huge step-up” for AMD’s CPU franchise.