| | | Advanced Micro Devices replaces Lam Research as Morgan Stanley's top chip stock for 2023
Dec. 15, 2022 8:55 AM ET
By: Chris Ciaccia, SA News Editor1
- Advanced Micro Devices (NASDAQ:AMD) has replaced Lam Research (NASDAQ:LRCX) as Morgan Stanley's top semiconductor stock for 2023, as the firm cited the significant rally in semiconductor stocks over the past couple of months that AMD has not really participated in.
- Analyst Joseph Moore, who rates both AMD (AMD) and Lam Research (LRCX) overweight, noted that the outlook for the industry going into next year is still "challenging," making the firm cautious even as stocks have rallied in recent weeks, including a 50% rise for Lam.
- "Lam remains [overweight] and is our preferred stock in semicaps, and we definitely think that some relative rerating was in order, but the magnitude of the rally saps our enthusiasm somewhat," Moore wrote in a research note.
- "AMD meanwhile has also rallied, but remains the worst performing stock in large cap despite the fact that their server roadmap demonstrably improved its technology leadership position over the course of the year," Moore added.
- Both Advanced Micro Devices (AMD) and Lam Research (LRCX) fell more than 2% in premarket trading on Thursday.
- Last month, Advanced Micro Devices (AMD) said it had resolved all of its ongoing patent litigations with Analog Devices (ADI) on mutually agreed terms.
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