Advanced Micro Devices, Inc. (NASDAQ:AMD) share price soar to a high at $14.56 2 days ago on the rumour that the company might be acquired by Texas Instrument.
The rumor is that Texas Instruments Incorporated (NASDAQ:TXN) is interested in acquiring the company at around $18 per share. The reason is because it is value for money with the technology patents AMD owns.
Yesterday, Shares of Advanced Micro Devices Corp. fell as much as 9% Thursday after Goldman Sachs cited Intel and Nvidia as threats and initiated coverage on the stock with a sell rating.
Analyst Toshiya Hari slapped an $11 price target on the stock, which implies 22% downside from Wednesday’s closing price of $14.17. AMD’s AMD, -6.35% shares traded just below $14 in late-morning trade. The average rating on the stock is the equivalent to hold, while the average 12-month price target is $11.97, according to a FactSet survey of roughly 30 analysts.
AMD seems to be undervalued in my opinion as they have an amazing range of Rzyen processors to be announced.