Advanced Micro Devices, Inc. (NASDAQ:AMD) and Apple Inc. (NASDAQ:AAPL) have secured strong momentum on their side, between AMD re-entering the chip-maker ball game with new Zen resurgence and Apple’s long-term edge into augmented reality with Apple Pay. One of Wall Street’s best-performing analysts highlights even greater confidence in AMD’s chances to outclass consensus expectations while Apple expert Gene Munster sees Apple leading the AR revolution. Let’s take a closer look:
AMD is the Comeback Kid
Top analyst Mark Lipacis at Jefferies is seeing some boomerang potential for AMD after assessing the Asia PC supply chain, spotlighting a positive shift happening at the chip giant’s headquarters. In reaction, the analyst reiterates a Buy rating on shares of AMD with a $16 price target, which represents a just under 19% increase from where the stock is currently trading.
Lipacis asserts, “Our recent checks in the Asia PC supply chain support our thesis of a systemic turnaround at AMD, namely: 1) higher responsiveness and better execution, 2) enthusiasm for Zen Desktop MPUs, 3) positive expectations for Zen Server. The supply chain is in ‘wait and see’ mode for Notebook Zen. The checks give us higher conviction in our above consensus estimates.”
Diving more in depth, “Our recent checks in the Asia supply chain indicate an important change in process and execution from AMD since its new CEO, Lisa Su, took over 2.5 years ago. Anecdotes indicate that not only has AMD become more responsive to PCODM questions and issues, but also that these are being dealt with at much higher levels of AMD’s organization. There also appears to be a higher level of trust in AMD’s ability to execute,” continues the analyst.
On a final bullish note, “We continue to hear a high level of enthusiasm for AMD’s new Zen Desktop MPU, the recent firmware issues (which we view as temporary) notwithstanding,” Lipacis concludes.
Looking ahead, the analyst anticipates a Zen-Notebook launch in the back half of the year, with the supply chain eagerly looking for samples to come to light.
Mark Lipacis has a very good TipRanks score with a 78% success rate and a high ranking of #3 out of 4,554 analysts. Lipacis yields 29.5% in his annual returns. When recommending AMD, Lipacis gains 63.3% in average profits on the stock.
TipRanks analytics demonstrate AMD as a Buy. Out of 19 analysts polled by TipRanks in the last 3 months, 9 are bullish on AMD stock, 9 remain sidelined, and 1 is bearish on the stock. With a loss potential of 14%, the stock’s consensus target price stands at $11.75.
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Apple Preparing to Make its Mark on AR through Apple Pay
In a world where augmented reality is evolving leaps and bounds to the forefront of technology, how does Apple weigh into the equation? From the eyes of Gene Munster – contributing insights from his new research-driven, venture capital firm Loup Ventures – the tech giant is riding the Apple Pay adoption trend from October of last year through the next decade.
Munster predicts, “Over the next 5-10 years, we believe augmented reality will emerge as the next dominant computing paradigm and that Google and Apple will provide the operating systems that power AR computing.”
When assessing Apple Pay adoption metrics, the analyst took a gander at internet retailer online sites to determine where the feature’s popularity stands. So far, the feature has earned 9% desktop browser adoption, 13% mobile browser adoption, and 40% in-app adoption. For the analyst, these rates are escalating well and can stand to compete with rivals Alphabet and Samsung wallet.
“In other words, the company has had over 2 years to build adoption at point of sale. Apple Pay at point of sale works with a broader tap and pay network; most locations that accept Apple Pay also accept other tap and pay offerings including Google Wallet and Samsung Pay. Since this our first measurement, we don’t have a comparative number. Bottom line: adoption of Apple Pay at point of sale is growing nicely, in-line with growth among other digital payment players, including Google and Samsung wallet,” explains the analyst.
As far as the user experience is concerned regarding easy-to-use satisfaction, “Bottom line: Apple Pay enjoys slightly better placement on mobile vs desktop,” Munster contends.
TipRanks analytics exhibit AAPL as a Buy. Based on 36 analysts polled by TipRanks in the last 3 months, 28 rate a Buy on Apple stock, 6 remain sidelined, and 2 are bearish on the stock. The 12-month average price target stands at $153.00, marking a nearly 9% upside from where the stock is currently trading.