Advanced Micro Devices‘ new chips are thriving out there and can take huge share from its opponents, in accordance to Wall Street.
The chipmaker reported better-than-expected first-quarter earnings outcomes Wednesday. AMD additionally gave income steering for its second quarter considerably above Wall Street expectations.
Stifel reiterated its purchase ranking on AMD shares, predicting sturdy gross sales for its newest chips.
“AMD turned in a solid beat and raise to estimates as the company’s new Ryzen Desktop CPU, Vega, GPU and Epyc server CPU are gaining traction within their various markets,” analyst Kevin Cassidy wrote in a notice to purchasers Thursday. “We continue recommending the AMD shares for the potential upside to estimates driven by adoption of Epyc server CPUs in 2H18.”
The firm’s shares rose 13.5 % Thursday.
Cassidy raised his value goal for AMD shares to $14 from $13, representing 44 % upside to Wednesday’s shut.
Even an AMD skeptic admitted this quarter’s monetary outcomes often is the begin of a vibrant future for the chip maker.
“Overall the company is finally beginning to show some product inflection to investors, with gross margins for the first time stepping up decently vs Street expectations,” Bernstein’s Stacy Rasgon wrote in a notice to purchasers Thursday. “For the first time since this product cycle kicked off AMD may have given investors at least some reason to dream.”
Rasgon reiterated his market-perform ranking and $13 value goal for AMD shares.
One analyst believes AMD’s new products will drive a multi-year product cycle for the corporate.
“Another beat and raise as AMD is executing on all fronts. The Ryzen and EPYC CPU portfolio is starting to inflect with massive design wins in all of the high x86 CPU volume segments in a cycle that may last for several years,” Rosenblatt Securities’ Hans Mosesmann wrote in a notice to purchasers Thursday.
Mosesmann reaffirmed his purchase ranking and $27 value goal for the corporate’s inventory.
— CNBC’s Michael Bloom contributed to this story.