November Growth Moderates After Strong October For Cloud Stocks, Analyst Checks Indicate

  • KeyBanc analyst John Vinh maintained an Overweight rating and price target of $85 on Advanced Micro Devices, Inc AMD
  • Vinh remained Sector Weight on Intel Corp INTC and saw a fair value of $30.
  • Vinh reiterated the Overweight rating and price target of $230 on NVIDIA Corp NVDA.
  • Results from Vinh's November Cloud Instance Tracker indicate total instances were flat Month-Over-Month and +23% Y/Y, compared with October (+3% M/M, +29% Y/Y). 
  • Modest recovery from Alibaba Group Holding Limited BABA led to the results, while U.S. CSPs were essentially flat M/M. 
  • On a Y/Y basis, GCP was +36% and Inc AMZN AWS was +29% Y/Y, while China cloud rebounded modestly with BABA growth at +22% Y/Y, and Microsoft Corp MSFT Azure was +14% Y/Y. 
  • AMD processor instances growth paused and was flat M/M, +111% Y/Y, following an inflection in October (+15% M/M, +185% Y/Y). 
  • After seeing strong growth in October, all processor family instances were flat in November as CSPs began to transition to Genoa. 
  • NVDA instances grew +1% M/M and +26% Y/Y, vs. October (+3% M/M, +24% Y/Y). The sequential growth was driven by Ampere, solely at BABA.
  • Intel processor deployments were flat M/M and +11% Y/Y, compared with October (+1% M/M, +13% Y/Y), with Ice Lake growing +1% M/M and +74% Y/Y, with expansion seen mostly at BABA and AWS.
  • ARM-based processors' growth was flat M/M in November vs. +3% M/M in October. AWS Graviton and Ampere Altra processors were flat M/M in November. 
  • Price Action: MSFT shares traded higher by 1.72% at $248.57 on the last check Thursday.
  • Photo by Rainer Stropek via Flickr
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