- Recently, to get an idea of what Advanced Micro Devices (NASDAQ:AMD) has on the horizon, Benchmark analyst Cody Acree held talks with some of its top brass, including CFO Jean Hu.
“Generally,” said the 5-star analyst, who ranks amongst the top 2% of Street experts, “we believe Jean was able to provide a significant amount of color to the larger topics of AMD’s belief in its long-term market share gains in Client Computing, as well as in the Data Center and Embedded processing markets, plus the company’s emerging position as a true leading alternative source of accelerator GPUs for the industry’s transition to AI.”
As for the current state of the PC market, Hu noted a “material return to supply/demand normalization.” After dealing with excess inventory due to COVID-related supply issues, things finally started getting back to normal in 2H23. …
Considering AMD’s Client Computing results for the December quarter, they were flat compared to the previous readout. However, Intel saw a noticeable uptick with 12% sequential growth and a significant 33% year-over-year uptick. When asked about this gap and whether it signaled a shift back in market share towards Intel, Hu highlighted the importance of looking at trends over multiple quarters. She pointed out that when you look at the broader picture, especially between the second half of FY22 and 2H FY23, AMD’s Client revenue increased by 51%. In contrast, Intel’s growth over the same period was a more modest 13%.
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There’s no doubt Acree came away impressed, with the analyst saying he continues to believe AMD offers an “attractive investment opportunity.”
As such, Acree reiterated a Buy rating and raised his price target from $187 to $245, suggesting the shares have room for growth of 38% from current levels. (To watch Acree’s track record, click here)*