AMD Shares Upgraded

Advanced Micro Devices Inc. (NYSE: AMD), the world's second largest maker of microprocessors, received a vote of confidence today when FBR Capital Markets upgraded its shares.

The chipmaker's shares had already received a boost in pre-market trading after its rival Intel (Nasdaq: INTC) had posted better than expected results, which was further evidence of an improving market for PCs.

FBR Capital Markets analyst Craig Berger upgraded AMD from Market Perform to Outperform. Berger cited the chipmaker's "accelerating move to unconsolidate itself from GlobalFoundries."

"Once AMD reduces its ownership stake in GlobalFoundries below 20 (percent), then it will unconsolidate financial results, a positive," Berger wrote in a note to investors.

By only designing the chips, while outsourcing all manufacturing, AMD is making the move to become a "fabless" microchip company. Berger said that fabless chipmakers enjoy higher profit margins than those that manufacture chips themselves.