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AMD’s “remarkable position” versus Intel and Nvidia sends share price surging

AMD is reportedly in a “remarkable position” to grow its market share against Intel and Nvidia, Morgan Stanley says.


AMD is reportedly in a “remarkable position” to grow its market share against Intel and Nvidia, according to an analyst at investment bank and financial heavyweight Morgan Stanley.

AMD’s share price is (at time of writing) up 3% off the news, which bolsters the company’s recent creep back up to the $35 price it experienced this summer following a slew of product launches – including 3rd Gen Ryzen CPUs and AMD Navi graphics cards on the 7nm process node from TSMC. These products have seen the company gobble up some of Intel’s desktop CPU share – and our best CPU for gaming guide – although are yet to break Nvidia’s stranglehold in the GPU game. Most important to Wall Street, however, the company has seen success with its EPYC server parts, which have started to dent Intel’s near-monopoly on the datacentre market.

Morgan Stanley analyst Joseph Moore has evidently taken note of this recent success, and has now raised its target for AMD up to $32, an increase of $2 (via Seeking Alpha). Largely the increase comes down to an assumption that server numbers will be greater than initially expected.

“AMD has put itself in a remarkable position,” Moore writes (via Street Insider). “We believe they are likely to gain share in every segment next year, competing successfully with both Intel and NVIDIA while spending a fraction of the R&D that those two companies spend – and generating new opportunities in IP licensing, semi-custom chips, cloud gaming, and supercomputers. In this note, we try to quantify the impact of those successes on 2020 earnings.”

AMD’s next earnings report for Q3, 2019 will be on October 29, 2019.

AMD’s semi-custom business is set to boom following the ramp-up to the Sony PlayStation 5 and Microsoft Project Scarlett launches. The company will soon be powering the Google Stadia cloud gaming service from November 19th, and the world’s fastest supercomputer, Frontier, alongside the US Department of Energy.