AMD’s share value has enjoyed a healthy bump over the past 48 hours as market analysts predict Team Red is poised to dramatically increase its market share with its upcoming 7nm products.
Advanced Micro Devices stock value has risen almost 17% from $24.89 to $29.02 per share, a new six-month high. The surge occurred after Wall Street semiconductor analyst David Wong recommended AMD as a ‘Buy’. Wong believes AMD is set to enjoy a great period of growth, despite an expected 10% overall downturn in market-wide chip sales throughout the rest of 2019.
“We forecast AMD’s reported GAAP EPS will climb through 2019 and rise meaningfully in subsequent years from roughly breakeven in the March 2019 quarter,” he wrote. “We believe that at some point in the next few years, AMD will be able to demonstrate EPS power of $2.00 or more.”
In terms of where AMD is expected to make its gains, both the GPU and CPU markets are expected to reap dividends for AMD in the coming years. AMD’s rapid progress in moving to the 7nm process puts it in a strong position going forward, with its EPYC CPU market share expected to treble from 3.5% up to 10%. Wong also believes notebook and desktop CPU sales will increase by almost 50% once the Ryzen 3000 series arrives. This is exacerbated by Intel’s supply-side problems which have allowed AMD to maneuver into a number of partnerships with big-hitting OEM manufacturers.
AMD’s success of the GPU side is a little flakier to predict, at least until we know what Navi finally entails, but Wong expects the price to performance offering from Navi 7nm graphics chips could see AMD increase its current market share from 19% all the way up to 30+%.
The cherry on top of all this will be the next-gen console launches. Both the PlayStation 5 and Xbox Scarlett are expected to launch in 2020 and will utilise custom AMD processors and graphics.
Everything's coming up Milhouse for AMD. Well, potentially, at least. Now it needs to make good on its promises and deliver must-have 7nm hardware.