Advanced Micro Devices, Inc. AMD 1.16% may have some major upside ahead, and investors have a rival semiconductor company to thank. AMD announced a new semi-custom deal with Intel Corporation INTC 2.23% on Monday that could provide a boost for AMD investors.
The Analyst
Canaccord Genuity analyst Matthew Ramsay.
The Rating
Canaccord Genuity maintains a Buy rating and $20 price target for AMD’s stock.
The Thesis
Intel will now be using AMD’s Vega GPU in its multi-chip high-end notebook packages. These light-weight notebooks priced at or above $1,000 represent roughly 15 percent of the global notebook market. Ramsay said the Intel deal is a stamp of approval for AMD’s technology.
“As such, we reiterate our positive thesis on AMD which is further underwritten by management’s ability to monetize the portfolio as strong near-term crypto-currency GPU demand, stronger Ryzen sales and first Ryzen Mobile launches should alleviate risks in Q4/17,” Ramsay wrote, “while H2/18 sets up as an inflection point with our industry checks indicating 7nm chip development timelines remain intact for what should prove even stronger CPU products across AMD’s roadmap versus Intel during 2H/18 and 2019.”
In the long term, Canaccord believes AMD can reach annual EPS of at least $1.25 by 2020. Ramsay said the Intel deal alone could contribute an additional 10 cents per share to AMD earnings in 2018.
The Intel deal will also serve…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
