Analysts Tristan Gerra and Maggie McNally believe Advanced Micro Devices, Inc.'s graphics processing units growth trends for second-half 2017 remain healthy. They moved most of the sales for EPYC to 2018 from 2H 2017.
The Baird analysts believe 2018 is going to be relatively healthy for semiconductor sector because of purchasing order restrictions from analog companies in 3Q. The restrictions resulted in backlog extending well into 1Q 2018 and they could limit a downward cycle. Gerra and McNally are not concerned about revenue growth in the semiconductor space because it is the highest in the last seven years and driven by secular demand trends.
Gerra and McNally see the fabless business model, ASP pressures and weakening end market verticals as the key risks for Advanced Micro Devices, Inc.
Baird's new price target for ON Semiconductor Corp is $25, while it has set a $37 price target for Diodes Incorporated. Both stocks' ratings were upgraded from Hold to Outperform.
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