Get 40% Off
💎 WSM is up +52.1% since our AI picked it in December! Unlock all premium stock picksUnlock now

AMD Gains as Benchmark Upgrades on Potential For Higher Server Marketshare

Published 05/28/2021, 01:02 PM
Updated 05/28/2021, 01:05 PM
© Reuters.

© Reuters.

By Dhirendra Tripathi

Investing – Advanced Micro Devices (NASDAQ:AMD) was up more than 2% Friday as Benchmark upgraded the stock to a buy expecting the chipmaker to grab share from Intel (NASDAQ:INTC) in the server market.  

Analyst Cody Acree sees the stock at $100 from its current level of $80.

The analyst noted that AMD's market share in servers is "very small" and doesn’t capture its design win and customer engagement capabilities.

“We expect AMD’s leadership to continue to drive share gains for at least the next few years," Acree said in a note.

Thursday, research firm TrendForce said global server shipments will post slower than expected sequential growth in Q2, but should accelerate in the second half of the year. It is now seen at 17.7% compared to previous forecast of 19.6%.

For the full year, AMD expects revenue growth of approximately 50% over 2020 driven by growth in all businesses, up from prior guidance of approximately 37% annual growth.

Revenue for the first quarter ending March 27 was $3.45 billion, up 93% from the same period a year ago. Net income was $642 million, up 189%.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.