Advanced Micro Gadgets Inc. got honors from a lot of analysts who cover the stock Wednesday, as the chip maker turned in another beat-and-raise quarter and threw into question the idea that data-center demand for chips is reasonably weak.
Late Tuesday, AMD AMD, -0.59% overthrew Intel Corp.’s INTC, -0.78% narrative of a data-center “food digestion stage” accounting for lower sales by reporting that its data-center chip sales more than doubled. AMD’s outcomes and better outlook likewise topped Wall Street price quotes.
Of the 37 analysts who cover AMD, 22 have buy ratings on the stock, 12 have hold scores, and 3 have sell rankings, according to FactSet. Of those, six analysts treked their cost targets, raising the average cost target on the stock to $106.10 from a previous $100.50, according to FactSet data.
Susquehanna Financial expert Christopher Rolland, who has a favorable rating and a $125 rate target, published a note entitled, “Blowout ’21 Assistance Informs a Tale of Two CPU Business.”
” AMD posted exceptionally strong results/guidance, driven by broad-based growth across nearly all product lines. But the star of the show was the favorably revised 2021 top-line growth assistance from +37% to 50% YOY,” he wrote.
With AMD reporting earnings of $9.67 billion in 2015, that hike recommends sales of about $14.65 billion this year, well above the $13.46 billion typical expert estimate at the time, according to FactSet. That analyst average was risen to $14.35 billion by Wednesday.
AMD’s strong incomes and outlook come amid a continuing global lack of microchips as the companies that make the silicon wafers that chip designers utilize work to clear waiting lists that cover numerous months.
Read: The semiconductor scarcity is here to stay, however it will impact chip business differently
Cowen expert Matthew Ramsay, who has an outperform ranking and a $120 price target, said the report and outlook showed there are no signs of AMD’s momentum slowing down.
” AMD is continuing to get material share in big and growing markets with the strength of its PC and server CPU plan and customer collaborations,” Ramsay said.
Jefferies expert Mark Lipacis, who has a buy rating and a $110 rate target, said he anticipates AMD’s bleeding of market share from Intel to only accelerate. The analyst approximates that AMD has a 9.1% market share of servers, up from 7.4% just a quarter earlier.
” We approximate AMD server CPU revs increased by 17% QQ compared to INTC server CPUs declining 9% QQ, translating to an approximate 170bps share gain by AMD,” Lipacis stated. “We continue to anticipate AMD’s share gains to speed up from 50-100bps/ qtr to 100-300 bps per quarter through 2021 and 2022 while AMD keeps its 1-yr procedure node lead.”
Read: Intel’s data-center consumers may be ‘absorbing,’ but AMD’s buffet is large open
Not everyone is persuaded by AMD’s strides over the past few years, nevertheless. Citi Research expert Christopher Danley, who has one of the couple of sell ratings on AMD and an incredibly low price target of $17 on the stock, does not anticipate AMD’s bleeding of market share from Intel to last much longer provided Intel CEO Pat Gelsinger’s comments that his business will aggressively protect its market share.
” Still expect a cost war when PCs cool,” Danley cautioned. “While AMD acquired share and we expect the company to continue to acquire share at least over the next number of years, we likewise anticipate Intel to initiate a price war in 2H21 to attempt to preserve market share.”
Over the previous 12 months, AMD shares have actually gained 53%. In comparison, the PHLX Semiconductor Index SOX, -1.39% has gained 86%, the S&P 500 index SPX, +0.06% has actually risen 46%, and the tech-heavy Nasdaq Composite Index COMPENSATION, -0.10% is up 63%.