AMD stock price rose (at the time of publication) by 3%, reinforcing the company’s recent recovery this winter after a number of successful launches (including Ryzen’s third generation and the new Navi series). These products managed to take Intel market share, but are still far from defeating NVIDIA in the GPU market. However, most important for Wall Street is EPYC’s success in a server market that has been virtually monopolized by Intel.
Joseph Moore, an analyst at Morgan Stanley, says the increase is largely based on the assumption that EPYC numbers will be higher than originally expected.
“AMD has put itself in a remarkable position,” wrote Moore. “We believe they will gain share in every segment next year by successfully competing with Intel and NVIDIA while spending a fraction of what these two companies spend on research and development and creating new opportunities in IP licenses, semi-custom chips, cloud games, and supercomputers.
AMD’s next third quarter 2019 results report will be available on October 29.