Shares of Advanced Micro Devices closed 6.3% higher on Monday after the chipmaker’s CEO made positive comments on the PC market and its first-quarter fiscal 2021 performance.
Advanced Micro Devices’ (AMD) CEO Lisa Su forecasted a better-than-seasonal first-quarter fiscal 2021 and sees continued growth in PC market in 2021. During the conference, Su said, “we’ve now gone through the last six or seven months, we spent a lot of time talking to our customers and sort of their customers’ customers. And I think what you’ll hear is that really we think this is more of a longer lasting situation where the PC has just become a central.”
Su further added that “I think we see 2021 as a growth year for PCs, which perhaps we haven’t heard in a while. And more importantly, I think, the product portfolio that we have is sort of very focused on some of these higher end feature sets as well that we think will play well for our long-term share gain prospects.” (See AMD stock analysis on TipRanks)
On Nov. 23, Northland Securities analyst Gus Richard maintained a Buy rating on the stock with a price target of $75 (19.1% downside potential). In a note to investors, Richard wrote, “We update our CY21/CY22 estimates for AMD without much change to the bottom line. The big shift was higher game console revenue that resulted in lower GM assumptions. Our non-GAAP EPS estimate remains below consensus. Upside risk is better cloud revenue, downside risk weaker console GM, and weaker than modeled PC client revenue.”
Meanwhile, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 13 Buys, 6 Holds and 1 Sell. The average price target stands at $90.41 and implies downside potential of about 2.4% to current levels. Shares have skyrocketed over 102% year-to-date.
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