How AMD Can Hit This Analyst's Bull-Case Price Target Of $135

Market Trading EssentialsAugust 10, 2020

1 minute read

high-flying stock in recent years, and there is more upside ahead, according to an analyst at Jefferies.” data-reactid=”19″>Advanced Micro Devices, Inc. (NASDAQ: AMD) has been a high-flying stock in recent years, and there is more upside ahead, according to an analyst at Jefferies.

INTC) is one full year behind AMD, as the former plans to ramp its Ice Lake Server CPUs toward the end of 2020, well behind the latter’s EPYC 2 Server MPUs on Taiwan Semiconductor Mfg. Co. Ltd. (NYSE: TSM) comparable 7nm node, the analyst noted.

delay in transitioning to 7nm.” data-reactid=”27″>AMD’s second-gen 7nm EPYC 3 server CPU is likely to ramp by the end of 2020. Lipacis also sees AMD’s transistor advantage widening amid Intel’s delay in transitioning to 7nm.

AMD’s unit share in notebook CPUs climbed 585 basis points year-over-year to 19% and revenue share increased 447 basis points, Lipacis said, citing Mercury Research data.

As the transistor gap between Intel and AMD widens, AMD remains poised for share gains, particularly in the server market.

“As it does, we think that the bull case for AMD, which is based largely on AMD capturing 30% share from INTC over the next 2-to-3 years, will morph to a 50% market share bull case 4-to-5 years out,” Lipacis wrote in the note.

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