Semiconductor Designer Advanced Micro Devices Inc (NASDAQ: AMD) climbs to new highs in the open market after revealing second quarter earnings for fiscal year 2020 last month. AMD’s edge of production nodes in the central processing unit (CPU) market weakened last month when silicon behemoth Intel Corporation admitted a defeat in the 7nm manufacturing node and admitted that products manufactured on this node were delayed through its own facilities.
AMD, which sells silicon manufactured by the Taiwan Semiconductor Manufacturing Corporation (TSMC), currently sells products manufactured on the latter’s 7nm node, whose manufacturing parameters such as transistor density are different from Intel’s products under the same brand name. built and sold.
Based on current market optimism about AMD, the company has previously exceeded $ 100 billion in market value or capitalization as the stock price reached a new high of $ 85.80.
AMD share price soars high all the time As Intel slowdown, price targets inject market optimism
The latest investment and research agency that expresses unbridled optimism about the future of AMD is Jefferies. Analyst Mark Lipacis in a verse Note has informed investors that he believes Intel’s 7nm ball drop represents deep-seated chip manufacturing challenges, and based on this fact, he believes not only that AMD will extend its lead in the arena as we move forward in time.
In addition, the analyst also believes that the best market share that AMD can achieve in the chip arena will reach 50% in just 12 months. If AMD then takes a 50% market share, the company’s earnings per share (EPS) could be $ 6.75 according to the analyst’s calculation.
In the second quarter of 2020, the company had quoted $ 0.13 of diluted earnings per share, which is why Lipacis’ best-case estimate expects amazing growth levels that will be unprecedented in AMD’s history.
In today’s trading, the open market chipmaker’s shares have risen more than 9% as they exceeded $ 84 / share by noon Eastern Time. This means growth of about 57% over the month, with growth levels exceeding those of the NASDAQ-100 stock index.
The company plans to launch Ryzen 400 desktop CPUs and Big Navi graphics processing units (GPUs) later this year. Ryzen 4000 is based on AMD’s Zen 3 architecture and as a result, the processors will improve their instructions per clock (IPC), general clock counts and total cores. Based on the RDNA-2 architecture, Big Navi will enable products to improve performance per watt (PPW) by as much as 50%, according to unconfirmed reports.
AMD’s near-equivalent semiconductor stocks, including Intel Corporation and NVIDIA Corporation, are not doing very well in the open market these days. Intel’s 7nm woes have undermined analyst confidence in the stock, with Wall Street lowering the company’s price targets across the board after last month’s earnings report. NVIDIA, which is said to be in talks about the acquisition of British design house Arm, is yet to report earnings for the previous quarter.
In another major victory for AMD, the company announced today that Cupertino tech giant Apple Inc’s 27-inch iMac desktop computer has been upgraded with its Radeon Pro 5000 GPU lineup. Apple, which is known to play things quite close to the chest, had the silicon built for its product exclusively by AMD. The GPUs feature AMD’s Navi architecture where users can choose from the Radeon Pro 5700 XT, Radeon Pro 5700, Radeon Pro 5500 XT or the Radeon Pro 5300 to reduce display times by as much as 55% and as low as 30. % according to official statistics provided by Apple with today’s product update.
While AMD has managed to convince Apple of the merits of its GPUs, the latter is still moving forward to replace Intel processors with those of Apple itself. Should this decision translate into high-end notebooks and products such as the iMac, Apple will use TSMC-built chips for all of its products. Upcoming console launches from Microsoft Corporation and Sony Corporation will also help earn AMD’s revenues, as they feature custom silicon designed and sold by the company.