Wall Street is growing more bullish on AMD Stock after the semiconductor company reaches highest CPU market share since 2007.
Advanced Micro Devices, Inc. (AMD) shares rallied on Wednesday following Wall Street analyst upgrade.
AMD’s strong third quarter earnings have helped the company to increase its market share in the $50 billion semiconductor industry. The increasing share in the semiconductor market impressed the analysts to upgrade the share price of AMD.
Analyst Bullish on AMD
Goldman Sachs analyst, Toshiya Hari raised the share forecast from $84 to $96 and also upgraded AMD stock’s rating from neutral to “conviction buy.” Hari’s share price upgrade shows almost 18% potential gain to investors compared to AMD’s closing price of $81.35 on Wednesday.
The company has recorded a massive increase in its market value across different segments. Here is a list of AMD’s segment-by-segmentanalysis including historical data:
- AMD overall x86 CPU share was 22.4% highest share since 2007, representing a 4.1 share points increase over last year’s quarter and 3 share points incline year-over-year.
- AMD desktop x86 share was 1% highest since 2013, showing 0.9 share points increase over last year’s quarter and 2.1 share points year-over-year.
- AMD notebook x86 share was 2% a new high compared to the previous high of 19.9% in Q2 2020. This shows 0.3 share points increase over the last year’s quarter and 5.5 share points year-over-year.
- AMD client x86 share was was 20.2% highest since Q2 2011, a 0.5 share points increase over last year’s quarter and 4.3 share points year-over-year.
Overall, AMD made a strong progress increasing the share value in all its major semiconductor segments.
Hari highlighted that the massive growth in personal computer and server markets along with improving profit margins will push the earnings growth. He anticipates that these Q3 trends will drive AMD’s earnings growth above Wall Street’s expectations.
The analysts from Bank of America also raised their shares forecast for AMD following the third quarter earnings beat. Analysts led by Vivek Arya raised AMD’s share price from $100 to $110, implying a 44% climb from theprior trading day close price.
AMD has also lifted its current-quarter revenue growth forecast to 41% from 32%. The increasing server sales and demand forAMD-powered gaming consoles portray healthy growth during this quarter.
Advanced Micro Devices, Inc. (AMD) remains ahead of its competitor Intel which currently faces a rough period recording a 4% sales drop in the third quarter 2020. So, all the odds are favoring AMD and that’s what the company expect in future.
AMD stock surged up to 6.23% on Wednesday. At premarket on Thursday at 6:50 A.M. EDT, AMD was continuing the bullish momentum trading higher at $84.87 up by 3.10%.