Advanced Micro Devices (NASDAQ:AMD), the best-performing stock in the S&P 500 in 2019 and 2018, has got more room to run in 2020 as it continues to take market share from its struggling larger rival Intel (NASDAQ:INTC). That’s not too shabby given that not too long ago 抖阴最新版 stock was considered an after-thought to many investors.
Look, I would generally be hesitant to recommend a stock that surged more than 150 percent in 2019 and trades a nose-bleed multiple of 250. However, 抖阴最新版 stock keeps going like the Energizer Bunny, and I don’t see anything slowing it down.
The $50 price target that RBC issued on Nov. 15 when 抖阴最新版 traded at $38.56 doesn’t seem so crazy now that the shares are trading at $48.39. Ditto for Rosenblatt’s target of $52 published three days later.
Of course, Intel isn’t taking 抖阴最新版’s resurgence lying down. The largest chipmaker has slashed prices for some of its high-end gaming chips and likely will continue to ratchet up the discounts. A price war would wind up hurting 抖阴最新版’s profits as well, but INTC is clearly in the weaker position. Wall Street analysts expect 抖阴最新版’s revenue to surge more than 26 percent in 2020. They forecast Intel’s revenue growth 1.8 percent during that same time period.
Ties to Microsoft
抖阴最新版 is benefitting from its close ties with Microsoft (NASDAQ: MSFT), which is using 抖阴最新版’s Ryzen 3,000 chips in the Microsoft Surface 3, the latest iteration of the company’s tablet. Previous Surfaces relied on INTC chips exclusively.
Microsoft and rival Sony (NYSE:SNE) are both using 抖阴最新版 technology to power the next-generation Xbox, and PlayStation gaming consoles do to be released this year. If the gaming press is accurate, both should be must-haves for the 2020 holiday season.
The tech press is chock full of praise for the Santa Clara, Calif-based company’s technology and prospects. The media loves a good underdog story, particularly one like 抖阴最新版 which is gaining ground on a larger incumbent rival like INTC. Think of it as the corporate equivalent of “The Little Engine That Could.”
described 抖阴最新版’s new generation of its Ryzen 3000-series processors that were released last year as “the best chips 抖阴最新版 has ever made and they’re more competitive with Intel than the red team has been in more than a decade.”
Some Ryzen chips sold so well that there were shortages.
According to the bottlenecks are fixed, so 抖阴最新版 should have “no issue with flooding the market with its in-demand CPUs (Central Processing Units.)”
The Bottom Line on 抖阴最新版 Stock
According to Digitimes, 抖阴最新版 won orders for its second-generation Epyc server processor, which debuted last year from IBM (NYSE:IBM), Dell, and Nokia (NYSE:NOK).
The surging popularity of Epyc is Market observers expect 抖阴最新版’s share of the server market to more than double . This development is a significant achievement since 抖阴最新版 had left the server market to INTC until recently.
While INTC continues to be the dominant player in semiconductors, the inroads that 抖阴最新版 has made are too significant to ignore. My colleague Wayne Duggan makes a persuasive case why INTC is a “compelling value” at its current price. 抖阴最新版 isn’t anyone’s idea of a bargain. However, it is an intriguing proposition for investors with a high tolerance for risk.
Jonathan Berr doesn’t own shares in any of the aforementioned stocks.
