AMD’s shares skyrocketed during the day after an analyst gave a buy rating for the shares, indicating a solid future for the company’s 7nm products. David Wong, an analyst streams AMD coverage with a target price of $33 per share, up 15% from today’s $29.02 closing price. With these news, investors jumped to buy shares, resulting in 113 million shares traded per day, well above the 10-day average of 68 million shares. Prices rose by more than 12% during the lunch break before easing somewhat to around 8% a day during the afternoon hours.
Expect high performance from AMD Ryzen, EPYC and 7nm Navi GPUs
According to the analyst, AMD’s growth will be in some key areas, particularly the company’s upcoming 7 nm products. EPYC’s market share will be more than doubled from currently 3-4 percent to 10 percent in the near future, the analyst says. The analyst predicts that laptops and x86 desktops will grow by almost half next year due to the next third generation of Ryzen products, and finally, although AMD is hard hit by GPU shipments, the analyst believes the next generation of Navi products expected by the end of this year is very promising. The GPU market share could increase from currently less than 20% to more than 30% if Navi possesses saturated distribution channels.
Stocks continued to rise after Digitimes reported that several major PC manufacturers spoke of an increase in processor and graphics card sales by the end of the second half of 2019. DigiTimes also reported that TSMC has seen a strong increase in orders for 7nm wafers, and of course we can assume that many of them are AMD products.