Jefferies pushed the target price for AMD's stock from $ 22 to $ 30, arguing that AMD had more technological advantage over Intel. The company also reaffirmed its stock rating.
Analyst Mark Lipacis shared in a message to the customer on Monday that he found it possible that in the second half of the year, AMD for the first time in recent history would have chip with a transfer resistor density The transitor is higher than that of Intel. "We see this as a fundamental change in competition, while our tests have also shown that AMD will continue to gain market share in high-end notebooks," he wrote. "
AMD's stock shot up to 11.5% on Tuesday.
AMD's stock has outperformed the market this year. Shares of chip makers jumped 144.8 percent from a year earlier, compared with a 8.5 percent gain in the S7P 500. AMD was the top performer in the index S & P 500 this year.
AMD is expected to overthrow Intel in the market with a more advanced chip. Intel says the 10-nanometer chip will be available for the 2019 holiday season, which is far behind schedule. AMD is expected to launch next generation 7-nanometer chips next year.
1 nanometer is 1 billionths of a meter. Smaller nanotechnology chips will allow companies to make chips faster and more energy efficient.
As a result, Lipacis has raised the estimated market share of AMD 2019 server chips from 8% to 12%.
Not only that, Cowen also raised the target price of AMD from $ 25 to $ 30 on Monday, arguing that AMD had faster chips from Intel. "The delayed Intel 10nm roadmap, originally scheduled for launch in 2016, will now be pushed to the second half of 2019," said analyst Matthew D. Ramsey. This opens up opportunities for AMD in this business segment."
Last month, Rosenblatt Securities also pushed the target price of AMD shares from $ 27 to $ 30, also ruling that AMD's manufacturing process was more advantageous than Intel's.