After Advanced Micro Devices Inc. to engage in Intel Corp. messaging. by 2020, billions of dollars are expected for the company to continue on that path while its larger competitor tries to correct itself.
Gelsinger’s revenue is seen as a much-needed talent pool to counter the appearance of AMD CEO Lisa Su, who, for the past six years, is the chipmaker Santa Clara. turned Calif. – based into a strong competitor to Intel after years of being a sad Silicon Valley assistant. AMD was riding a roughshod over Intel back in July, when Intel said it had to delay the next-generation 7-nanometer chips to 2023 due to manufacturing issues, the same chip architecture that AMD launched in the start in late 2019.
Over the last 12 months alone, AMD shares have risen nearly 80% while Intel shares have fallen nearly 10%, compared to a 60% increase in the PHLX Semiconductor Index SOX,
AMD’s stock doubled in 2020, after being the biggest gainer on the S&P 500 index in both 2018 and 2019, pushing AMD’s market capitalization above $ 100 billion.
Also: AMD to buy Xilinx for $ 35 billion in stock
BMO Capital Markets analyst Ambrish Srivastava, who recently lowered AMD to meet and lower its price target to $ 75, said he expects Intel’s guard change to change stock price pressure AMD.
“We think a big part of the rich valuation is also due to the poor execution of Intel,” Srivastava said. “This in turn has opened up the ‘blue sky’ position for what AMD will get compared to Intel’s even higher drive valuation.”
What to expect
Earnings: Of the 34 analysts surveyed by FactSet, AMD is on average expected to post a modified earnings of 47 cents a share, up from an expected 39 cents a share at the start of the quarter and 32 cents a share reported in a year ago. Estimate, a software platform that crowdsources estimates from hedge fund executives, insolvency, buying side analysts and others, seeking earnings of 50 cents a share.
Income: Back in November, AMD was forecasting fourth-quarter sales of $ 2.9 billion to $ 3.1 billion, and analysts had averaged revenue of $ 2.6 billion at the time . Now, 30 analysts, on average, expect revenue of $ 3.02 billion, up from the $ 2.13 billion reported in the quarter a year ago. Estimate expected revenue of $ 3.08 billion.
Stock transfer: In the fourth quarter, AMD shares rose 12%. In comparison, the SOX index rose 25%, the S&P 500 SPX index,
gained 12%, and the Nasdaq Composite Index COMP index,
rose 15%.
What analysts say
Cowen analyst Matthew Ramsay, who has an improved performance rating, said he expects AMD ‘s earnings and product roadmaps to remain as volatile compared to Intel in the coming year.
“Over the next 2+ years, we don’t see much change in competition or fundamentally from AMD’s perspective,” Ramsay said. “Road maps are in place.”
“While a renewed focus and clarity on Intel’s internal priorities and roadmaps could help a little customer loyalty and help reduce some share losses in the meantime, if Intel was successful in repairing its 7nm roadmap would have the earliest results at a scale in 2023, ”said analyst Cowen.
A Securities analyst Vivek Arya, who has a buyout on AMD, said that although the company announced new lines of gaming laptop and data center chips “Milan” at CES earlier this month, to forget. Arya said investors were concerned about the “lack of detail on Milan without new customers being revealed,” and “a focus on commercial games or notebooks where AMD faces a major challenge.” Also at CES, competitor Nvidia Corp. NVDA,
announced a new line of laptops.
Benchmark analyst Ruben Roy, who has a grip rating, said he expects tailwinds to pick up in both of AMD’s business segments.
“We are updating our 2021 revenue and EPS estimates to reflect Computer and Graphics cookie revenue to a higher level with continued strength in the PC market and semi-used revenue. higher due to the continued strength of recent game console shows, ”said Roy.
Analysts, on average, expect $ 1.77 billion in computing and graphics sales from AMD, and $ 1.23 billion in enterprise sales, both rooted and semi-rooted, the sector includes a data center and gaming-console chips .
Of the 35 analysts covering AMD, 20 have buy or fat levels, 12 have ratings and three have sold out, with an average price target of $ 95.30.