Susquehanna analyst Christopher Rolland improved the shares of Advanced Micro Devices Inc. AMD,
to positive from neutral on Wednesday, following the better-than-expected earnings report from the chip company and Intel Corp.’s INTC,
He admitted last week that he would have to delay the launch of his 7-nanometer chips. “As changes in stocks appear to be accelerating for AMD, and the competitive gap widens, we can no longer wait patiently,” Rolland wrote in his note to clients. He expects AMD to see a 20% share of the server market by 2023, compared to the current single-digit share, and a 35% share of laptops, compared to about 20% now. “Overall, with a bit of good luck we envision more than $ 3 of EPS in 2023 and a bull box for almost $ 5 in 2025,” he wrote. AMD shares were up 11% in pre-market trading on Wednesday and have gained 47% so far this year. The S&P 500 SPX,
down 0.4% in that time and the PHLX SOX semiconductor index,
It was up 11%.
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