Advanced Micro Devices stock will rise on the strength of its latest lineup of chips, according to Nomura Instinet.
The company makes processors that act as the main computing brains for PCs, servers, and graphics cards, competing with Intel (INTC) and Nvidia (NVDA).
The back story. AMD stock (ticker: AMD) has risen about 75% so far this year as investors have grown optimistic about the company’s product offerings for 2019.
On Sunday, the chip maker launched its new “Zen 2” family of desktop processors. In December, Barron’s suggested AMD could be a big winner for 2019 because of its promising lineup of products.
What’s new. Nomura Instinet analyst David Wong on Monday reiterated his Buy rating for AMD shares, citing his optimism for chip market share gains for the company.
“We think that the new CPUs...will help AMD sustain its desktop processor market share momentum, driving unit market share,” he wrote. “AMD’s high revenue growth and rapidly improving profitability justify what we consider to be an elevated [valuation] multiple.”
Wong predicts AMD’s desktop processor market share will rise to 20% or more by December from 17% in March.
AMD stock rose 2% to $32.67 on Tuesday.
