Why Advanced Micro Devices (AMD) Popped 11.5%

12:21 09/05/2018

Since bottoming out at $9 in April 2018, shares of Advanced Micro Devices [NASDAQ:AMD) have done nothing but rocket higher. In fact, it last traded at $28.06. At this pace, we wouldn’t be shocked to see it challenge its 2005 high around $45. And it would appear that Wall Street agrees. Analysts at Cowen just boosted their price target on AMD from $25 to $30, noting the company has demonstrated an ability to catch up to Intel. “Intel's delayed 10nm roadmap — originally targeted for 2016 launch in client and now pushed to 2H19 — opens opportunities for AMD across the business," they note, as quoted by CNBC. Analysts at Jefferies reiterated their buy rating on the stock with a $30 target, as well. In fact, Jefferies analyst Mark Lipacis notes by the second half of next year, AMD will have a chip with higher transistor density than Intel for the first time in recent history, as noted by CNBC. "We see this as a foundational shift in competitive dynamics. Meanwhile, our checks also suggest that AMD continues to take share in high-end notebooks.” AMD is expected to beat Intel to market with its advanced 10 nanometer chips by 2019. It’s also expected to release a 7-nanometer chip next year, as well.

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