News

3 Reasons Why This AMD Analyst Is Optimistic on Chipmaker’s Pensando Deal

Distressed Patriotic Flag Unisex T-Shirt - Celebrate Comfort and Country $11.29 USD Get it here>>


Advanced Micro Devices, Inc. announced Monday an agreement to buy distributed services platform company Pensando for $1.9 billion.

The AMD Analyst

KeyBanc Capital Markets analyst John Vinh maintained an Overweight rating and $165 price target for AMD shares.

The AMD Thesis

KeyBanc is constructive on the Pensando deal, analyst Vinh said in a note.

Pensando is a data processing unit provider, specializing in providing hardware and software stacks to accelerate networking, security, storage, and other services for cloud, enterprise and edge applications, the analyst said. It also strives to reduce total cost of ownership, he added.

Pensando’s products are currently deployed at scale across cloud and enterprise, and the company has among its customer base several high-profile tech companies such as Microsoft Corporation’s Azure and Goldman Sachs Group, Inc., the analyst noted.

Vinh said his optimism on the deal stems from three factors. Firstly, Pensando’s programmable packet processor, or DPU, and software stock will likely strengthen AMD’s product offerings in heterogeneous computing, the analyst said.

Secondly, the analyst sees a niche opportunity for AMD to cross-sell to Pensando’s customer base and thereby expand its reach. Thirdly, Pensando will likely enhance AMD’s R&D capability to accelerate its data center roadmap.

By Shanthi Rexaline

© 2022 The Epoch Times. The Epoch Times does not provide investment advice. All rights reserved.

Benzinga

Follow



Source link

TruthUSA

I'm TruthUSA, the author behind TruthUSA News Hub located at https://truthusa.us/. With our One Story at a Time," my aim is to provide you with unbiased and comprehensive news coverage. I dive deep into the latest happenings in the US and global events, and bring you objective stories sourced from reputable sources. My goal is to keep you informed and enlightened, ensuring you have access to the truth. Stay tuned to TruthUSA News Hub to discover the reality behind the headlines and gain a well-rounded perspective on the world.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.