AMD-Intel Deal Lends Almost 100% Upside To The Stock

Advanced Micro Devices, Inc. may have some huge upside soon ahead, and investors have a rival company to thank, Intel. The new deal the AMD announced , new semi-custom deal with Intel. Canaccord Genuity maintains a Buy rating and $20 price target for AMD’s stock. Intel will now be using AMD’s Vega GPU in its multi-chip high-end notebook packages. The announcement is important because it solidifies a partnership between competitors AMD and Intel for a product in a space in which both compete but its the intel leading by huge margin. And every body could guess who is the loser here, Nvidia. These light-weight notebooks priced at or above $1,000 represent roughly 15 percent of the global notebook market. Actually Intel deal is a stamp of approval for AMD’s technology Ramsay said. Any sort of freindship for Amd that shares the Intel market or Sale is good for AMD now. Intel is so dominant in the Laptop market and that makes this deal a huge deal.

“As such, we reiterate our positive thesis on AMD which is further underwritten by management’s ability to monetize the portfolio as strong near-term crypto-currency GPU demand, stronger Ryzen sales and first Ryzen Mobile launches should alleviate risks in Q4/17,” Canaccord Genuity’s Matthew Ramsay wrote.

“while H2/18 sets up as an inflection point with our industry checks indicating 7nm chip development timelines remain intact for what should prove even stronger CPU products across AMD’s roadmap versus Intel during 2H/18 and 2019.” Canaccord Genuity’s Matthew Ramsay.

In the long term, Canaccord believes AMD can reach annual EPS of at least $1.25 by 2020. Ramsay said the Intel deal alone could contribute an additional 10 cents per share to AMD earnings in 2018. The Intel deal will also serve to ease the fears of investors that some has believed that AMD was beginning to lose its GPU gaming market share.

Tags: Technology, AMD, Intel. AMD AND INTEL, AMD AND INTEL 2018, AMD AND INTEL work together, AMD intel apple,

Mohsen Daemi
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