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.






This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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