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Want to know the inner workings of a company? Just go straight to the horse’s mouth. In other words, talk to senior management. Probably easier said than done, unless you’re a Wall Street analyst. Interacting with executives is part of the job and can give investors insight into how the company will develop in the future.
What to understand these days Advanced Micro Devices (NASDAQ:AMD) Benchmarking analyst Cody Ackley met with executives including Chief Financial Officer Jean Hu.
The 5-star analyst, who ranks in the top 2% of street experts, said, “In general, I believe Gene has been able to add considerable color to the larger conversation of AMD’s belief in long-term market share gains.” ” The company is establishing itself as a truly leading alternative source of accelerator GPUs not only in client computing, but also in the data center and embedded processing markets, as well as in the industry’s transition to AI. ”
Regarding the current state of the PC market, President Hu pointed out that there has been a “significant recovery to normalization of supply and demand.” After dealing with overstocks due to coronavirus-related supply issues, the situation finally started to return to normal in the second half of 2023. Although now in balance, the company expects client revenue to decline as usual in the March quarter, then be quiet in the second quarter, before picking up again in the second half as usual. There is. .
Considering AMD’s December quarter client computing results were flat compared to the previous announcement. However, Intel showed notable increases with 12% quarter-over-quarter growth and a significant 33% year-over-year increase. When asked about this gap and whether it signals a return of market share to Intel, Hu emphasized the importance of looking at trends over multiple quarters. Looking at the broader picture, he pointed out that AMD’s client revenue increased by 51%, particularly from the second half of FY2022 to the second half of FY2023. In contrast, Intel’s growth rate over the same period was a modest 13%.
Regarding AMD’s involvement in the AI PC market, the CFO was quick to point out that AMD has taken a pioneering step by bringing to market the first PC with an AI NPU engine. The company recently announced its updated Ryzen 8000G series in January, marking the industry’s first desktop CPU with an integrated AI engine. To date, he has already shipped millions of AI PCs with Ryzen processors, and AMD estimates that he has a staggering 90% market share in his AI-enabled PCs. I am.
No doubt Acree was impressed, with the analyst saying he continues to believe AMD presents an “attractive investment opportunity.”
As such, Ackley reiterated his Buy rating and raised his price target from $187 to $245, suggesting the stock has room for 38% growth from current levels. (Click here to see Acree’s track record)
Elsewhere on the market, the stock has an additional 28 Buys and 5 Holds, giving it a Moderate Buy consensus rating. Analysts expect the stock to rise another 11% over the next year, considering the average target is currently $196.65. (look AMD stock price prediction)

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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. Content is for informational purposes only. It is very important to perform your own analysis before making any investment.
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