Advanced Micro Devices, Inc. (NASDAQ: AMD) is positioned strongly in each of the segments in which it operates thanks to its strong product momentum and execution, according to Rosenblatt Securities.
Against this backdrop, an analyst the firm is expecting an upward revision to near-term Street estimates.
The AMD Analyst: Hans Mosesmann reiterated a Buy rating on AMD with a $120 price target.
The AMD Thesis: AMD's Lisa Su hinted at an analyst conference the chipmaker's first quarter of 2021 is likely to be better than seasonal trends, Mosesmann said in a Monday note.
AMD historically averages about a 10% sequential decline between the fourth quarter and the first, the analyst said.
AMD can capture 50% of the entire x86 CPU market in the coming year, helped by technology and product roadmaps, accelerating design pipelines, increasing attach rates of GPUs to optimize EPYC server CPUs and more, he said.
"AMD's CPU and GPU roadmaps will have significant and sustainable advantages in the world of computing that the competition currently do not have," Mosesmann said.
Related Link: Intel's 7nm Delay Materially Positive For AMD, Says BofA Analyst
Discussing other points highlighted by Su, the analyst said the addition of the Zen 3 architecture is accelerating the gains seen in AMD's PC market share over the last few years.
The Milan cycle is likely to be larger than the Rome cycle, with customers likely to migrate from Rome to Milan, he said, citing the chipmaker's CEO.
Even as the new gaming console launches have been lauded as resounding successes, the peak for gaming consoles is usually three to four years out from the launch, Mosesmann said.
Rosenblatt maintained its fourth-quarter sales and non-GAAP EPS unchanged at $3 billion and 46 cents, respectively. The firm increased its fiscal-year 2021 first-quarter sales estimate from $2.56 billion to $2.73 billion and non-GAAP EPS estimate from 34 cents to 40 cents.
The firm also raised its fiscal-year 2021 revenue and non-GAAP EPS estimates, while leaving its 2022 estimates unchanged.
AMD Price Action: AMD shares, which have gained over 100% year-to-date, were last seen slipping 0.36% to $92.33.
Related Link: AMD Analysts See Momentum Ahead, With Xilinx Deal Expanding Market Opportunity
Photo courtesy of AMD.
Latest Ratings for AMD
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Nov 2020 | Wells Fargo | Upgrades | Equal-Weight | Overweight |
| Nov 2020 | Goldman Sachs | Upgrades | Neutral | Buy |
| Oct 2020 | Citigroup | Maintains | Sell |
View More Analyst Ratings for AMD
View the Latest Analyst Ratings
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The Link LonkDecember 01, 2020 at 10:58PM
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AMD Analyst Projects Strong Start To 2021 For Chipmaker - Benzinga
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