Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Advanced Micro Devices, Inc. (NASDAQ:AMD) shares have been on a tear, thanks to its strong product momentum. An analyst at Northland Capital Markets, however, thinks shares are ahead of the fundamentals.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Gus Richard downgraded AMD from Outperform to Market Perform and maintained his $36 price target, which suggests 12% downside from current levels. (See his track record here)
The Thesis
AMD is experiencing revenue momentum, as its PC and server revenues increased 59% sequentially and 81% year-over-year to $1.14 billion in the third quarter, Richard said in a note. He said this compares to a 16% sequential increase but a 2% year-over-year decline for Intel Corporation (NASDAQ:INTC) on an apples-to-apples basis.
Richard estimates AMD's unit share at about 18% in desktop, 15% in notebooks and 5% in servers.
Notwithstanding the recent inroads made by AMD, incremental share gains could come more slowly in all these markets due to Intel's incumbency, the analyst said. As AMD's revenues increase, the incremental market share gains would be a smaller percentage of revenue.
FREE REPORT: How To Learn Options Trading Fast
In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.
The analyst expects AMD's year-over-year revenue growth to peak in the high 30% range in 2020 on server market share acceleration and a gaming console product cycle.
Some estimates at the high-end of consensus, according to Northland, are irrational exuberance.
"While shares are likely to melt up between now and the end of the year, we would not be chasing them," Richard wrote in the note. Northland also sees profit taking kicking in in the new year.
Price Action
AMD's stock traded lower by 2.8% to $39.84 per share at time of publication, off the multi-year highs hit earlier this week.
Related Links:
AMD Option Traders Turn Bullish Following Second Analyst Target Hike
Nvidia Impresses Analysts With Datacenter Resurgence, Expanding Margins
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.