AMD Management Is Laser-Focused, Intends To Gain Market Share On Strong Execution

Following a series of focused investor meetings with Advanced Micro Devices, Inc. AMD CEO Dr. Lisa Su, Canaccord Genuity said the management message to investors was laser-focused and consistent.

The message relayed was this –- AMD is fully committed to delivering a highly competitive, high performance CPU and GPU roadmap and executing such that it gains solid market share in both consumer and enterprise market segments for Ryzen processors as well as Naples server.

Confident in Positive Thesis

Analyst Matthew Ramsay, in a note out Thursday, said he's now increasingly confident in his positive thesis despite the recent stock price appreciation and volatility. The analyst continues to gain confidence in the following:

• AMD re-emerging as a competitive second source to Intel Corporation INTC, with leadership in several sub-segments
• Gradual GPU unit share recovery in low market tiers, with Polaris likely to be supplemented by the Vega launch in higher-value tiers
• AMD now being focused on delivering a multi-generational roadmap with the customer backing and foundry partners

Estimates Materially Above Consensus

Canaccord Genuity said modest growth across a $50+ billion total addressable markets from very low CPU/GPU share levels has driven its estimates materially above the consensus estimate.

Price Target Hiked

The firm acknowledged the prevalence of roadmap execution and competitive risks, but believes the risk/reward is still tilted toward the upside. Additionally, the firm said its long-term bullish target of $1 in earnings per share looks attainable by 2020.

Canaccord Genuity reiterated its Buy rating on the shares of the company, while it lifted its price target to $17 from $14.

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Image Credit: Advanced Micro Devices, Inc. (AMD) [Attribution], via Wikimedia Commons