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
Macro News Motivates Investor Moves In September's IMX Report
Investor Movement Index September Summary
The Disconnect Between Memory Chip Output And Processing Equipment Sales: Part 1 Memory Chips (Seeking Alpha)
Related CSCO
Venture Capital Gathering Showcases Michigan's 'Secret Weapon': Collaboration
Cap-Weighted ETFs Are Still Pretty Good
Stocks To Watch: Was That A Speed Bump? (Seeking Alpha)

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 2018BairdDowngradesOutperformNeutral
Oct 2018BarclaysMaintainsUnderweightUnderweight
Sep 2018Northland SecuritiesDowngradesOutperformMarket Perform

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!
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