Shares of tech giant Advanced Micro Devices (AMD) were crushed this year.

After starting the year around $151, it sank to a low of about $57.  All thanks to broad market weakness, inflation, fears of recession, price target cuts, plunging PC demand, you name it.  That’s the bad news.  The good news is the future looks far brighter for AMD.

For one, Warren Buffett’s Berkshire Hathaway just bought $4 billion worth of Taiwan Semiconductor.  That news is adding to hopes the chip business is at or near a bottom.

And, as noted by Barron’s:

“In particular, it’s a vote of confidence from a major investor that Taiwan Semiconductor isn’t under threat from a potential Chinese invasion of the self-governing island of Taiwan—and the knock-on effect that would have for its customers. The company is a major supplier to Advanced Micro Devices, Qualcomm, and Nvidia.”

Analysts seem to like the AMD stock on the pullback, too. UBS upgraded AMD to a buy rating, with a price target of $95 a share.  Baird analyst Tristan Gerra also just upgraded the beaten-down tech name to outperform with a price target of $100.  He believes the company’s newest Genoa chips could widen the company’s competitive moat.  As quoted by Yahoo Finance:

“Supply chain checks highlight strong reception of Genoa (5nm Zen 4) at data center OEMs, which are shifting significant resources in support of AMD,” Gerra wrote. “Genoa’s very significant performance step up should translate into an acceleration in market share gains for AMD in 2023, along with significantly higher pricing and a higher gross margin profile, reinforcing AMD’s EPYC performance leadership for years to come.”