Advanced Micro Devices’ (AMD) Ryzen Is Taking Share Gradually From Intel: BMO


BMO analyst Ambrish Srivastava spent a few days in Asia meeting with companies across the PC, handset, server, and semiconductor markets, and got more evidence of incremental projects with Advanced Micro Devices, Inc.(NASDAQ:AMD) CPUs, in PCs, and in the server space.

Srivastava wrote, “We did get incremental evidence of AMD emerging from essentially the basement in terms of market share, both in PCs, and on the server side as well. The latter in the form of new projects ODMs are engaging with hyperscale customers on with AMD server CPUs. While we acknowledge that there are miles to go before all the early goodwill begins to manifest itself in AMD’s numbers, we find the signs encouraging.”

“On the product front, our checks suggest that AMD Ryzen is indeed taking share gradually from Intel. There are still various limitations in Ryzen’s peripheral support, but given the price gap (two-thirds of the price at the same speed as Intel) as cited by motherboard makers, motherboards makers are willing to expand certain functionality on their own and offer higher-speed products at similar or lower cost to attract end users,” the analyst added.

Srivastava reiterates a Buy rating on shares of Advanced Micro Devices, with a $15.00 price target, which implies an upside of 20% from current levels.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ambrish Srivastava has a yearly average return of 16.3% and a 79% success rate. Srivastava has a 10.2% average return when recommending AMD, and is ranked #229 out of 4572 analysts.

Out of the 25 analysts polled by TipRanks (in the past 12 months), 10 rate Advanced Micro Devices stock a Buy, 12 rate the stock a Hold and 3 recommend to Sell. With a downside potential of 7%, the stock’s consensus target price stands at $11.55.