The way many of Intel’s (NASDAQ:INTC) CPUs talk to the motherboard they’re attached to is dangerously vulnerable in three different ways. Two of the similar ones have been dubbed Spectre, and the third security flaw has been labeled Meltdown. It’s not a virus. It’s a way for a hacker to break into a particular computer and steal things like passwords.
Last week, Intel has disclosed a new speculative execution side channel vulnerability, dubbed L1 Terminal Fault (L1TF), that could potentially leak information residing in the processor L1 data cache.
Ramsay wrote, “Our initial reaction is increased conviction in our LONG-term bullish thesis on AMD gaining meaningful market share in both server and enterprise PC markets – both because they plan much improved products on 7nm from TSMC versus Intel on 10nm across the board, but also due to increased urgency for 2nd-sourcing to mitigate security risks of Intel owning nearly the entire server CPU market. We remain confident in AMD hitting their public market share goals for mid-single digit unit share exiting 2018 and double-digit share within 4-6 quarters post that as 7nm Rome systems ramp. We note AMD and many ARMbased vendors were also affected by portions of the Spectre/Meltdown bugs, but these new L1 Cache bugs are Intel-specific.”
“For now, we rate AMD Outperform with a $25 PT and AMD remains our top mid-cap pick. We rate Intel Market Perform with a recently lowered $49 PT. Again, we don’t pretend to have the answers here and the business and performance impacts will likely be nuanced and fluid. We intend to dig further in our meetings at/around Hot Chips 2018 conference this week in Silicon Valley,” the analyst concluded.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matt Ramsay has a yearly average return of 23.9% and a 64% success rate. Ramsay has a 49.3% average return when recommending AMD, and is ranked #94 out of 4859 analysts.