Two chip makers, AMD and Intel speak well for themselves on the stock market. The AMD share goes to new records. The multi-year high of $34.36 is not far off. The excitement surrounding the third generation of Ryzen processors is driving up the stock price. The new chips not only convince in numerous performance tests but also the analysts which are summarized in this Forbes article. For example, the analyst David Wong expects AMD to achieve a 20 percent market share in the desktop segment in September thanks to the new processors. He sees Intel’s dominance declining. Wong raises the target share price from $33 to $37.
Advanced Micro Devices stock value doubles in the last 12 months as compared to Intel’s 1 percent decline
While the AMD share price doubled in the last twelve months, Intel lost one percent. The stock market has made a clear judgment about which chip group is setting the tone – and now analysts are also betraying their favorites. But many other analysts are holding back. Goldman and Susquehanna are cautiously adjusting their price targets of $25 to $28 and $26 to $30, respectively. But overall, the July 24 Q figures are expected. The consensus target of $29.59 is now below the current price.
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AMD is recommended to buy and receives a target price of $35, which corresponds to a price potential of 17 percent. Analyst Matthew Bryson sees a major shift in the PC and data center market in the future due to the resurgence of AMD processors.
NASDAQ: AMD Stock Market welcomes bull trading in future
AMD may have to meet analysts’ high expectations before the chart can sustainably breach the $34 resistance level. In the second quarter, stock revenue is expected to be $1.53 billion with earnings per share of 0.08 percent. If analysts’ estimates are not met, the stock threatens to fall and form a triple top delayed or double top.
Finally, Intel is no longer a permanent recommendation. On the other hand, AMD stock has a large price potential as a result of the sustained increase in market share.