Barrons has an article recommending AMD [stock_quote symbol=”AMD” show=”symbol” zero=”#000″ minus=”#f00″ plus=”#0f0″]stock as it is one of cheapest technology stock listed. Priced at $2.02, it has traded at $2.61 (“AMD Bets With a New Stack of Chips,” Jan. 31, 2015). Although they hit $3 toward the end of the year, they sold off on AMD’s first-quarter sales guidance. The stock recently traded under $2.

AMD is expected to launch new high-end desktop chips, says Raymond James analyst Hans Mosesmann. He sees AMD in 2017 moving into server chips, a market Intel dominates, and it could also get a lift from virtual-reality graphics chips, a booming new market that should help it take on its competitor Nvidia [stock_quote symbol=”NVDA” show=”symbol” zero=”#000″ minus=”#f00″ plus=”#0f0″](NVDA).

AMD CEO Lisa Su sees a return to non-GAAP operating profit in the second half, from expected losses in the first half. The shares trade at an enterprise value/sales ratio of 0.8, based on 2017 projections. Jefferies analyst Mark Lipacis thinks that ratio should be closer to 1, in which case shares could rise to $3.50 over the next year, 88% above their recent price.

[stock_quote symbol=”INTC” show=”symbol” zero=”#000″ minus=”#f00″ plus=”#0f0″]

Source : Barrons

By Harry