Susquehanna analyst Christopher Rolland has just released his quarterly PC-SIGnals report, which tracks semiconductor industry trends by analyzing data from several desktops, laptops, GPUs, and SSDs (solid-state drives).
The report indicates a mixed picture for Advanced Micro Devices (NASDAQ:AMD) as “Ryzen desktop impresses, but Mobile a no-show. GPU pricing falls and AMD loses share as crypto wanes.”
Specifically, “AMD desktop CPU share increases again in 2Q18 (now at 15.2%) as Ryzen continues to ramp (although ASPs flat QOQ). Additionally, Ryzen gained share in standalone processors (up +5% QOQ to 22%). However, disappointingly Ryzen Mobile is just 0.5% of total laptop share in its second quarter after launch. AMD 2Q18 laptop CPU share hit a new low at just 3.2%,” Rolland noted.
“While AMD’s Ryzen Mobile launched in late 2017, we note that it took two full quarter after the original Ryzen launch last March before we saw a noticeable shift in desktop share. We are begging to see signs of Ryzen Mobile in the channel but these processors still have less than 0.5% share. We anticipate seeing a larger impact from Ryzen Mobile in our 3Q18 studies,” the analyst continued.
Rolland rates AMD stock a Neutral, with a price target of $11, which reflects a potential downside of 34% from last closing price.
People often ask, is it worth listening to this analyst? According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Christopher Rolland has a yearly average return of 10.8% and a 68% success rate. Rolland has a -9% average return when recommending AMD, and is ranked #356 out of 4830 analysts.
This chip giant certainly has the Street divided. Based on 16 analysts polled by TipRanks in the last 3 months, 8 rate a Buy on AMD stock, 6 issue a Hold, while 2 recommend a Sell. The 12-month average price target stands at $15.57, marking a nearly 7% downside from where the stock is currently trading.