The biggest beneficiary of Intel Corporation's INTC 7nm product delay is archrival Advanced Micro Devices, Inc. AMD, and an analyst at BofA Securities hiked their AMD price target Monday on this premise.
The Semiconductor Analyst: Vivek Arya reiterated a Buy rating on AMD shares and increase the price target from $65 to $77.
The AMD Thesis: The 7nm delay could accelerate AMD market share gains back toward their historical peaks of 20% for PC and 25% servers, up from 17% and 10%, today, Arya said in a Monday note. (See his track record here )
AMD is on track to achieve earnings power of $3-plus by 2023, suggesting a CAGR of 43%, the analyst said.
Given elevated expectations going into AMD's earnings report on Tuesday, there could be some profit-taking, Arya said.
The analyst said he has higher confidence in AMD's medium/longer-term prospects.
Intel's Q2 Outperformance Positive For Computing Peers? Intel delivered a strong second quarter thanks to solid cloud and resilient PC segments, Arya said.
This bodes well for compute peers AMD, and Xilinx, Inc. XLNX, which is due to report Thursday, the analyst said.
Strong 5G trends from Analog Devices, Inc. ADI and Texas Instruments Incorporated TXN also have a positive read-through for Xilinx, he said.
AMD, INTC, XLNX Price Action: AMD shares were trading down 0.89% to $68.78 at last check Monday, while Intel shares were down 1.06% at $50.06.
Xilinx shares were trading 3.77% higher at $106.53.
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