Morgan Stanley On AMD At CES: 'Impressive Group Of Products, But Nothing Particularly Surprising'
The AMD Analyst
Morgan Stanley analyst Joseph Moore maintained an Equal-weight rating on AMD with a $42 price target.
The AMD Thesis
AMD announced third-generation Ryzen Mobile systems that were impressive compared to its 7nm desktop products, Moore said in a Tuesday note. (See his track record here.)
The company also introduced a new Lenovo Yoga system based on the chip, the analyst said.
AMD expects 12 design wins in the first quarter of 2020 and over 100 by the end of the year, he said.
A new, higher-performance Ryzen 7 4800 designed to deliver 45 watts TDP compared to 15 watts for primary notebooks was less expected, Moore said.
AMD announced a system with Dell Technologies Inc (NYSE:DELL) that it expects to ship in the second quarter, the analyst said.
Morgan Stanley expects AMD's notebook revenue share to climb from 6.9% in the third quarter of 2019 to 10.6% by the fourth quarter of 2020, with unit share expected to increase from 14.7% to 18.1%.
Targeting content creators, the company announced a new high-end Threadripper with 64 cores priced at $3,990, Moore said.
In the graphics segment, AMD launched the 5600XT 1080p gaming platform to be priced at $270, which is positioned between the 5500 and 5700, the analyst said.
A mobile version is planned for a launch in the first half of 2020, he said.
AMD did not discuss new graphics architectures, although Morgan Stanley expects these later this year for both gaming and data center.
"Overall, it's an impressive group of products, though nothing particularly surprising given that we have already seen these cores in action on the desktop side," Moore said.
The strong momentum in AMD shares over the last couple of weeks is due to data points on strong server traction, and therefore it is important for the company to show good server numbers when its releases its December quarter results, the analyst said.
AMD Price Action
AMD shares were falling slightly to $48.36 at the time of publication.
Photo courtesy of AMD.
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