[ad_1]
In the past half-decade or so, virtually no stock has outperformed the market as Advanced Micro Devices (AMD) at. The huge market gains reflect the company’s actual performance, which has seen the chipmaker significantly narrow the gap to its traditionally much larger rival Intel (INTC).
In addition to offering premium products, AMD has made the most of Intel’s production delays to eat away at its processor dominance. However, 2021 is shaping up to be a different year from recent ones. Intel has taken significant steps to turn around its business and only recently appointed a new CEO, and one with the proper pedigree.
Deutsche Bank analyst Ross Seymore notes how the new figure at the head of the rival could impact AMD’s forward charges.
“As we anticipate that AMD will continue to run its new product ramps, and any changes to INTC’s manufacturing strategy will not impact competitive intensity for at least 2 to 3 years, we we expect this subject to weigh more and more heavily on LT AMD’s thesis ”. rated the 5-star analyst. “Therefore, despite increasing our short-term revenue estimates (higher revenue from semi-custom processors + PC, with slightly lower EPS due to a higher tax rate in 2021), we expect the increased uncertainty around competitive intensity to weigh on the premium already offered by AMD valuation. “
As Seymore tempers expectations for future performance, he expects AMD to beat estimates when the company releases 4Q20 results early next month (February 2).
Seymore expects AMD to generate revenue of $ 3.06 billion, up 9% quarter-over-quarter, close to the high end of AMD’s forecast and beyond. above the consensus estimate of $ 3.02 billion. On the bottom line, Seymore is anticipating EPS of $ 0.48, above its previous forecast of $ 0.47.
Longer term, while Seymore says AMD risks losing market share to Intel over the long term, “given the positive data points in the gaming ecosystem,” the analyst noted its estimate of 1Q21 revenue of $ 2.76 billion to $ 2.84 billion (Street predicts $ 2.70 billion).
That said, for now, Seymore expects AMD shares to remain limited. The analyst rates the stock as Hold, with a target price of $ 90. (To look at Seymore’s record, click here)
Where does the rest of the street side come from on this chip player? AMD maintains a moderate buy by analyst consensus, based on 23 recent ratings. These include 15 purchases, 6 takes and 2 sales. The shares are trading at $ 89.45, and the average price target of $ 96.55 suggests a margin upside of around 8%. (See AMD stock market analysis on TipRanks)
To find great ideas for smart stock trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks.
Disclaimer: The opinions expressed in this article are solely those of the analyst presented. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
[ad_2]
Source link