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What: Shares of Applied Micro Circuits (NASDAQ: AMCC) have jumped today by as much as 18% following a bullish analyst upgrade.
So what: Raymond James analyst Hans Mosesmann boosted his rating on Applied Micro Circuits from "outperform" to "strong buy," while increasing his price target from $10.50 to $13. Mosesmann believes investors aren't appreciating the potential of the company's new X-Gene microprocessor.
Now what: The ARM-based X-Gene chips target the micro-server market and offer 70% of the performance of Intel's Xeon chips. The analyst believes that X-Gene is still six months to 12 months ahead of rival 64-bit ARM chips, which should allow Applied Micro to grab the bulk of the ARM server market in coming years. Applied Micro is set to announce fiscal first quarter earnings on July 24.
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