AMD (AMD) Top Stock in Nomura Analyst's Universe

Saying he believes AMD (AMD) will benefit from the notebook industry looking for chips that are good enough, and will migrate away from the premium Intel (NASDAQ:INTC) asks for, Nomura chip analyst Romit Shah says he still considers Advanced Micro Devices to be the best stock in his universe of coverage.

Shah said, “Investor sentiment remains set against AMD and our positive view has often been the source of some amusement. Furthermore, our marketing activities have revealed very few holders and should the company perform as we believe it will, we expect many investors to return to the shares.”

Shah also said the balance sheet must be considered, as it is much stronger since AMD spun off its manufacturing arm as Global Foundries. He sees the stock as still having up to 32 percent more upside.

He also shrugged off the concerns surrounding the time it is taking to replace departed CEO Dirk Meyer. Shah noted, “We believe that the company has a good selection of candidates lined up and that an announcement will be made relatively soon.”

AMD closed Monday at $8.43, dropping $0.22, or 2.54 percent.