HOT NEWS!FBR Capital upgraded AMD (NYSE: AMD) from Market Perform to Outperform with a price target of $5.50 (from $3)
FBR Capital upgraded AMD (NYSE: AMD) from Market Perform to Outperform with a price target of $5.50 (from $3) following last week's GigaOM Structure conference in San Francisco and meaningful conversations with engineers and CTOs managing some of the world's largest hyperscale infrastructures.
"While Applied Micro's X-Gene appears to have definitive mindshare in ARM-based server SoCs, AMD's SeaMicro has what may be a larger revenue opportunity by selling full microserver systems based on an array of microprocessor options," analyst Christopher Rolland states. "While we recognize the ongoing challenges in the PC market, we applaud AMD's decision to diversify away from the traditional PC market and toward semi-custom ICs, embedded processors (including game console APUs), and microserver systems."
The analyst belies APUs sold into Microsoft's Xbox One and Sony's PS4 can generate over $900M in additive revenue annually, while SeaMicro may drive another $300M in revenue in 2015.