UBS upgraded AMD to Buy, expects PC ‘replenishment’ during FY23

UBS analyst Timothy Arcuri upgraded AMD to Buy from Neutral with a price target of $95, up from $75. The PC segment has been early in digesting inventory and been dragging down growth, but overall CPU shipments are annualizing to about 230MM units in Q4, which is "far below even the most bearish market forecasts for PCs in 2023", the analyst tells investors in a research note. Arcuri further anticipates "some replenishment" moving through FY23, adding that compute hardware "typically out-performs off the bottom".