Advanced Micro Devices (AMD) was positively rated this week for its latest third-generation Ryzen chips for PCs, raising its stock close to its peak. A Wall Street analyst pushed up his AMD share price target above average as the positive response to new processors emerging at technology sites was generally positive.
On Sunday, AMD announced the worldwide availability of its third generation Ryzen desktop processors and the new Radeon graphics cards. The processors and graphics cards are aimed at the high-end PC gaming market. The chips are based on AMD’s industry-leading 7-nanometer designs.
AMD shares rose 3.5% and closed today at $33.15 on the stock exchange. In intraday trading, the stock rose to USD 33.18, reaching an all-time high of 34.30 points on 10 June.
David Wong, the analyst at Nomura Instinet, confirmed his AMD Shares Buy rating on Monday and raised his target price from 33 to 37
These new chips should help AMD to increase its desktop market share, Wong said. According to him, AMD’s market share in this segment will rise to 20% or more in the final quarter of the year, compared with 17% in the quarter ending March. AMD has been eroding Intel’s dominance for some time.
“As AMD consistently implements its product roadmap, our confidence in the company’s ability to achieve market share and revenue growth and operational levels by the end of 2019 and 2020 is growing,” Wong said in a statement to customers. “We expect the company to bring its family of 7-nanometer ROM server processors to market by the end of this quarter.
This could be one of the best years for AMD, particularly because of the third generation Ryzen chips and the arrival of the long-awaited new server segment EPYC ‘Rome’ processors.
Source