What Do Analysts Think about AMD’s New Products?
Analysts’ recommendations on AMD
Advanced Micro Devices’ (AMD) new product launches have made the stock one of the most highly traded semiconductor stocks in 2017. Wall Street analysts have a “hold” recommendation for AMD, although they are optimistic about the company’s new products.
Interested in AMD? Don't miss the next report.
Receive e-mail alerts for new research on AMD
Wells Fargo analyst David Wong has set an $18 price target for AMD, as he believes that the company’s new chips have competitive advantages. He concluded the following:
- AMD’s Vega GPUs (graphics processing units) are comparable to NVIDIA’s GPU offerings in the $379–$599 range.
- AMD’s EPYC server processors offer comparable performance to Intel’s latest Skylake server processors in the two-way server space, up to the $4,000 price point.
- Ryzen Threadripper performs well against Intel’s i9 desktop chips and can beat the latter in some cases for comparable prices.
Susquehanna analyst Christopher Rolland has set a $15 price target for AMD. Susquehanna’s PC-SIGnals report tracks semiconductor industry trends by analyzing data from several desktops, laptops, GPUs, and SSDs (solid-state drives). According to the report, AMD’s Vega increased GPU ASP (average sales price) by as much as 25% sequentially, increasing the company’s GPU market share 4% in 3Q17.
The report also expects AMD’s CPU (central processing unit) market share to increase in 3Q17. Rolland expects Ryzen to increase AMD’s CPU ASPs as much as 70%. The report expects ODM (original design manufacturer) notebook sales to increase 7.2% sequentially in 3Q17, up from its previous estimate of 2.6%. High ODM sales would benefit both AMD and Intel.
Jefferies analyst Mark Lipacis is bullish on AMD and has set a $19 price target for the stock. He expects that the GPU demand for cryptocurrency miners would remain strong in 3Q17 and that this trend could generate longer-term growth.
Lipacis is also optimistic about the EPYC server processor. He pointed to third-party benchmarks by ServeTheHome for EPYC. The site stated that AMD’s “mainstream offerings are competing with de-featured [Intel] Xeon Silver CPUs and absolutely obliterate what Intel is offering.”
A recent report by Digitimes stated that Intel had delayed the launch of its 10nm (nanometer) Cannon Lake Notebook processors from mid-2018 to the end of 2018. Lipacis stated that this is good news for AMD, as it would have greater opportunity to sell Ryzen Mobile processors.
Overall, AMD’s new product launches could put the company back on the growth track.