AMD reported better-than-expected first-quarter earnings results Wednesday. The company’s shares rose 13.5 percent Thursday. AMD also gave revenue guidance for its second quarter significantly above Wall Street expectations.
“AMD turned in a solid beat and raise to estimates as the company’s new Ryzen Desktop CPU, Vega, GPU and Epyc server CPU are gaining traction within their various markets,” analyst Kevin Cassidy wrote in a note to clients Thursday. “We continue recommending the AMD shares for the potential upside to estimates driven by adoption of Epyc server CPUs in 2H18.”
Rasgon reiterated his market-perform rating and $13 price target for AMD shares. One analyst believes AMD’s new products will drive a multi-year product cycle for the company. “Another beat and raise as AMD is executing on all fronts. The Ryzen and EPYC CPU portfolio is starting to inflect with massive design wins in all of the high x86 CPU volume segments in a cycle that may last for several years,” Rosenblatt Securities’ Hans Mosesmann wrote in a note to clients Thursday.
Mosesmann reaffirmed his buy rating and $27 price target for the company’s stock. Stifel reiterated its buy rating on AMD shares, predicting strong sales for its latest Ryzen chips.