Advanced Micro Devices, Inc. Stock Is Near Its 10-Year High; Should You Buy Now?

AMD is set to gain significant CPU market share by the end of Q2 2017 as the chipmaker even confirmed the launch time frame of their Ryzen 5 and Ryzen 3 processors, which are arriving in Q2 and second half of 2017 respectively. These processors are aimed at the mainstream and budget PC building audiences. One should note that Ryzen 5 and 3 series family also "feature the same DNA as the high-end Ryzen 7 processors but come at sweet-spot pricing". Also, the fastest 6 Core Ryzen 5 1600X  is 69% faster than i5 7600K. This gives us an idea of things to come from AMD. The speculation of AMD's Ryzen bettering Intel's offerings is almost a reality and it would see AMD making significant gains out of it. This gives more reasons for investors to cheer.

More Bullish Commentary From Chip-Stock Analysts

A recent Barrons post reports fresh bullish commentary on AMD stock. Rosenblatt Securities‘s Hans Mosesmann has a $16.50 price target for AMD and to quote him on AMD's advantage over Intel:

"The “instruction” processing centric CPU is being threatened by the “data” processing centric GPU which structurally advantages AMD as the #2 player in GPUs with the company’s new Vega architecture. More importantly for the shares is the re-emergence of AMD in mainstream and high-end x86 CPUs particularly in servers given Intel’s near 100% share. AMD’s new Zen family of processors (architected by highly acclaimed CPU architect Jim Keller), is set to gain share in mid-to-high end server sockets as datacenter players are keen on an alternative source that likely will not sell them “up” every year, and with features that Intel may not offer such as 8 memory channels (DRAM)"

MKM Partners‘s Ruben Roy assigns AMD stock a neutral rating and considers the sale of Ryzen processors “could be an inflection point”. However, he is reluctant to recommend AMD stock currently due to its valuation though he states "there is a lot to like about AMD’s resurgence". A Seeking Alpha post puts the stock price target of AMD as high as $25 by the end of 2017. The author of the post sites the "calendar of events" lined up for AMD as the primary driver for AMD stock. One important thing to note from the above post is that AMD stock has gained immensely on Ryzen and Vega product speculation and launch, a similar thing can be on the card when the Naples Zen server CPU is launched in Q2 (tentative launch time). The $25 price target seems too far-fetched for now but all these factors still do suggest that AMD stock rally is far from over. A fellow Amigobulls contributor also had written about the $25 price target for AMD.

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Disclosure: Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a ...

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