AMD Shares to Jump 25% in Wake of PC Market Growth: Stifel

[Raevenlord]

Analyst Kevin Cassidy, responsible for AMD shares rating with Stifel, has revised expected AMD growth in the wake of expected (and already verified) PC market growth. Following the news at the end of last week, AMD shares jumped by 5% on Friday, and increased by another 2% on Monday. This marks an increase of 61.3% YTD (year-to-date.) Looking at this trend, the analyst increased his 12-month price target on the stock to $21 from $17, a nearly 27% upside from Monday close.





The upside rides on expected sales increase for AMD's EPYC models, and considers an expectation of some 5% captured market share for the server business in Q4 2018, as well as an expected gross profit margin increase in Q3 to 37.7% (compared to 37% in Q2).

"We expect AMD to benefit from the stronger than expected results, especially given the trends for enterprise, gaming, and high-end notebooks, all markets in which AMD has improved its competitive position through its Ryzen processors."

Kevin Cassidy, Stifel

View at TechPowerUp Main Site

 

[chaosmassive]

well done AMD,
now if you please fix your GPU department, you're golden

 

[Fx]

Wow. They've come a long way. I remember when they had dipped below $2 and thought "this is the end".

 

[Vayra86]

Wow. They've come a long way. I remember when they had dipped below $2 and thought "this is the end".

Getting the sense that the 'death of AMD' is a similar prediction to 'death of PC gaming'... never really happens

Let's hope they can keep this up and its not an inflated number.

 

[JRMBelgium]

Go go go AMD!

 

[dalekdukesboy]

Wish I bought shares at $2.00! Of course no one knew they'd turn around so well, and who knows where it'll head now. However I still think it's a great time to buy and probably now would be far safer than in past with their big league improvement with CPU's with up to 32 core Threadripper processors. I can't see them going anywhere but up for a long time if they just keep up the innovation.

 

[Fx]

Getting the sense that the 'death of AMD' is a similar prediction to 'death of PC gaming'... never really happens

Let's hope they can keep this up and its not an inflated number.

While a fair analogy, I never once felt PC gaming near its death throes. Whereas AMD had products (cpu & gpu) that could hardly compete, mountains of debt, couldn't produce revenue year after year, had low market share and their stocks plummeted. AMD is one helluva fighter!

 

[TheGuruStud]

Wish I bought shares at $2.00! Of course no one knew they'd turn around so well, and who knows where it'll head now. However I still think it's a great time to buy and probably now would be far safer than in past with their big league improvement with CPU's with up to 32 core Threadripper processors. I can't see them going anywhere but up for a long time if they just keep up the innovation.

I told everyone to buy, but no one listened.

 

[Tsukiyomi91]

the truth to why their shares have a positive jump was how good their 1st gen Ryzen did & how AMD managed to shake up Intel's trees for the first time in many years. Sure their GPU department needs to get their heads together with Raja Koduri no longer at the helm, but doesn't mean they will back down on that front. Also... expect to see 3rd gen Ryzen with the lowest tier SKU offering 6 cores clocking at full 4GHz (hopefully). If it happens, then it's gonna make Intel's head spin.

 

[snakefist]

Wish I bought shares at $2.00! Of course no one knew they'd turn around so well, and who knows where it'll head now. However I still think it's a great time to buy and probably now would be far safer than in past with their big league improvement with CPU's with up to 32 core Threadripper processors. I can't see them going anywhere but up for a long time if they just keep up the innovation.

Yeah, I actually wanted to buy them (for 1.89$ if I remember correctly), because they fluctuated ~25-30% anyway. Similarly, before Zen there was a golden opportunity - went up like 3 times in short period. *If* I had enough money for investment like that, I'd be a millionaire now
Unfortunately, my stock-value knowledge is about several tech-companies only and nothing else

 

[dalekdukesboy]

Yeah, I actually wanted to buy them (for 1.89$ if I remember correctly), because they fluctuated ~25-30% anyway. Similarly, before Zen there was a golden opportunity - went up like 3 times in short period. *If* I had enough money for investment like that, I'd be a millionaire now
Unfortunately, my stock-value knowledge is about several tech-companies only and nothing else

Yes, but still the shares I think are undervalued. I read the "experts" who know "all" the stocks but they literally have zero idea of the tech involved and what AMD does specifically enough to understand why they are making money and are profitable other than that they are essentially. You/me/us etc all knowing the tech or at least a good understanding of a few tech-companies as you put it is certainly enough where we could invest in them watching trends and do far better than those pencil necked doofus dorks working at financial exchanges etc would do. The only reason to spread out your portfolio over a crapload of stocks is to diversify and have less volatility and it all averages out hopefully in the positive no matter what. However, if you picked AMD or just a few stocks you knew personally and invested wisely you could watch the returns skyrocket. Only downside is obviously they could have crashes etc like AMD right up till 2015 and it looked like they were headed for the door if they didn't compete, but they have hence the comeback.

I just for the first time went to stocks of Intel/AMD on a timeline yesterday and went back 30 years and Intel has had some pretty big fluctuations at times, in mid 2000's when AMD crushed them with FX-55 etc series and Intel had netburst crap p4's AMD spiked and Intel was down to where AMD is about now, whereas right now Intel is worth around 50 bucks a share but they were at almost 53 and their CEO was caught fucking a coworker and was ousted plus their CPU's now are being challenged so I expect their stock to dip. Unless they come out with serious counter punch to AMD's 32 core and down Threadrippers unless the market buys Intel on name alone they are overvalued in my opinion and will slip further before bottoming out. My prediction anyway, also I do NOT think it's too late or even close to invest in AMD, recent low was around 10 bucks 3 years ago I think and still they are "only" at 16'ish so they have a lot of potential to grow especially where they are back in the black. Earnings come out soon I read and I think that is all investors are concerned about and I can't imagine the earnings aren't good this quarter unless management really screwed up controlling costs/budgets etc.

 

[House_Paint]

Wish I bought shares at $2.00! Of course no one knew they'd turn around so well, and who knows where it'll head now. However I still think it's a great time to buy and probably now would be far safer than in past with their big league improvement with CPU's with up to 32 core Threadripper processors. I can't see them going anywhere but up for a long time if they just keep up the innovation.

This is not true, I have been long AMD since $1.91. If people were paying attention to the news surrounding the Zen processor (Jim Keller) at the time they could have also seen it coming.

 

[eidairaman1]

They will move again next month, most school districts are back in session in the US.

 

[dalekdukesboy]

This is not true, I have been long AMD since $1.91. If people were paying attention to the news surrounding the Zen processor (Jim Keller) at the time they could have also seen it coming.

I see what you're saying, but I'm talking about not after they came up with a few positive steps and decent things like Zen etc, I'm talking about when they were totally in tank and their GPU's and CPU's both sucked. If you knew what they were working on sure or if you kept a close enough eye on them at some point you could be fairly confident they'd recover. But, I'm just saying at a certain point no one could say for sure they'd come back to where they are now, possibility was there, but no certainty.

 

[Jism]

Congrats to the people who bought AMD shares back when it was as low as 2 ~ 4$.

 

[dalekdukesboy]

Congrats to the people who bought AMD shares back when it was as low as 2 ~ 4$.

Or even this year when it was just under 10.00