By Dhirendra Tripathi
Investing – Advanced Micro Devices (NASDAQ:AMD) was up more than 2% Friday as Benchmark upgraded the stock to a buy expecting the chipmaker to grab share from Intel (NASDAQ:INTC) in the server market.
Analyst Cody Acree sees the stock at $100 from its current level of $80.
The analyst noted that AMD's market share in servers is "very small" and doesn’t capture its design win and customer engagement capabilities.
“We expect AMD’s leadership to continue to drive share gains for at least the next few years," Acree said in a note.
Thursday, research firm TrendForce said global server shipments will post slower than expected sequential growth in Q2, but should accelerate in the second half of the year. It is now seen at 17.7% compared to previous forecast of 19.6%.
For the full year, AMD expects revenue growth of approximately 50% over 2020 driven by growth in all businesses, up from prior guidance of approximately 37% annual growth.
Revenue for the first quarter ending March 27 was $3.45 billion, up 93% from the same period a year ago. Net income was $642 million, up 189%.
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