The new chips produced by Advanced Micro Devices, Inc. (NASDAQ:AMD) are expected to take the bigger portion of the market share from its main competitors this year. This is a according to a report released by Wall Street.
The company reported very impressive results in the fourth-quarter earnings results which were released recently. AMD announced its revenue guidance the past quarter which were far beyond the expectations of Wall Street.
Wells Fargo Securities restated it’s outperform rating on the company’s shares and gave a forecast for strong sales of the company’s latest chips.
In a note, analyst David Wong said the company has strong lineup of new products which puts it in a better competitive edge against its main competitors in notebook, desktop, graphics processor units (GPUs) and server processors. He added that AMD is in a better position to gain consistent and sustainable market share throughout 2018.
AMD’s shares went up 5 percent on Wednesday. The share has gone up 31 percent since the start of the month in comparison to the 6 percent return of S&P 500. The company’s performance ranks third in the entire S&P 500. Wong restated his $18 price target for the company’s share. This represent a 40 percent raise compared to Tuesday’s close.
Wong noted that the company reported its second consecutive quarter of impressive financial revenue from its graphics chip business as a result of rising average selling prices and unit sales.
In yet another case, another analyst is very hopeful that the company will report positive sales results for 2018. Hans Mosesmann an analyst at Rosenblatt said the company is doing well from all fronts of its business. He added that the fourth quarter results reported by the company was a mirror into its performance in this year.
Mosesmann restated his buy rating and increased the price target from $22 to $27 for AMD shares. He added that the strong business performance in the gaming as well as cryptocurrency mining markets for AMD’s graphics segment.
Mizuho also restated its buy rating on the company’s shares, citing the company’s inexpensive valuation.