Market Overview

Stifel Raises AMD Price Target After Cisco Unveils EPYC-Powered Servers

Share:
Stifel Raises AMD Price Target After Cisco Unveils EPYC-Powered Servers
Related AMD
Is AMD A Top Idea For 2019? This Chart Is Saying 'Wait Before You Buy'
Jim Cramer Weighs In On Cisco, General Electric And More
Intel Readies The Nukes For ARMed Battle As It Leads Competition To Barren Wasteland (Seeking Alpha)
Related CSCO
Benzinga's Top Upgrades, Downgrades For December 14, 2018
A Peek Into The Markets: US Stock Futures Tumble Ahead Of Economic Reports
US Market Indexes Close Lower Friday, Extending Losses (GuruFocus)

Cisco Systems, Inc. (NASDAQ: CSCO) has unveiled a new line of Advanced Micro Devices, Inc. (NASDAQ: AMD) EPYC-powered servers, and one Wall Street analyst said Cisco’s new servers are just one of many reasons to like AMD stock.

The Analyst

Stifel analyst Kevin Cassidy reiterated a Buy rating on AMD and raised the price target from $14 to $17.

The Thesis

AMD and Cisco announced a server platform powered by EPYC 7000 series processors. The Cisco platform should be available in the second half of 2018, and Cassidy said investors should expect more manufacturers to announce EPYC integration as the advantages of the server CPU become clearer.

AMD’s EPYC processor will start to gain market traction in the second half of 2018, giving AMD mid-single digit market share, up from less than 1 percent in the same period last year, the analyst said. 

AMD should have no problem hitting its product launch targets, which will serve to build customer confidence, Cassidy said. End demand for PCs, servers and add-in-cards is on the upswing, he said. 

“Consistent with our April 4 AMD upgrade thesis, we believe AMD's EPYC server CPU is winning server designs and AMD's broader PC CPU offering will allow AMD to outperform the market." 

The PC market seems to have stabilized for now, and Cassidy said he expects several Ryzen-based PCs to be unveiled at the Computex event from June 5-9.

Price Action

AMD stock was up 3 percent Friday morning following the bullish commentary. 

Related Links:

Cryptocurrency Mining Grew Faster Than Expected, Bernstein Says In Semiconductor Roundup

Q1 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolio

Latest Ratings for AMD

DateFirmActionFromTo
Oct 2018BairdMaintainsNeutralNeutral
Oct 2018BMO CapitalMaintainsMarket PerformMarket Perform
Oct 2018BarclaysUpgradesUnderweightEqual-Weight

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

Posted-In: Analyst Color Cryptocurrency Price Target Reiteration Top Stories Markets Analyst Ratings Tech Best of Benzinga

 

Related Articles (CSCO + AMD)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
DLTRBernsteinUpgrades0.0
CNPUBSUpgrades34.0
UGIUBSDowngrades63.0
ATOUBSDowngrades106.0
CSCONomuraDowngrades50.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Needham Holds Tesla On Manufacturing Problems, Long-Term Drag On Gross Margins

Bernstein Questions The Sustainability Of Lululemon's Momentum