The recently launched third-generation 7nm EPYC 3 server processors (code-named Milan) by Advanced Micro Devices, Inc’s (NASDAQ: AMD) have strengthened the company’s share gain opportunity in cloud, high-performance computing (HPC) and enterprise customers, according to BofA Securities.
The Advanced Micro Devices Analyst: Vivek Arya maintained a Buy rating for Advanced Micro Devices, while keeping the price target unchanged at $115.
The Advanced Micro Devices Thesis: The stock has underperformed year to date, down 10% versus the 8% gain in the SOX Index, amid concerns around competition from Intel Corporation (NASDAQ: INTC), Arya said in the note.
“However, we believe impressive Milan launch should reinvigorate interest in AMD, with the new CPUs boasting both single and multithread performance edge vs. INTC for the first time ever,” he added.
“AMD’s strong execution increases our confidence in its ability to grow server unit share to 10%/13% exiting 2021/22E from 7.5% in 2020, though we see no reason share couldn’t return to prior peak 24% given solid roadmap and growing ecosystem,” the analyst further wrote.
AMD Price Action: Shares of Advanced Micro Devices had risen by 2.54% to $84.60 at the time of publication Tuesday.
(Photo: Advanced Micro Devices)
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