KeyBanc Capital Markets analyst Weston Twigg maintained a Sector Weight rating on AMD.
Wells Fargo Securities analyst Aaron Rakers maintained an Outperform rating with a $30 price target.
KeyBanc Sees Share Gain, TAM Expansion Opportunities
AMD views data center as a major opportunity, with a total addressable market estimated to grow from $20 billion today to $29 billion by 2021, with the breakup between CPU and GPU at $17 billion and $12 billion, Twigg said in a Tuesday note.
The analyst sees meaningful opportunity for the company to expand its CPU share in the data center sector, with a 10-15 percent share likely exiting 2019.
AMD is also likely to gain data center traction with its new 7nm GPU, Twigg said.
" ... We believe its share-gain and TAM expansion opportunities are real and compelling."
That said, KeyBanc forecast near-term risk tied to slowing hyperscale demand and a relatively high valuation compared to peers.
Wells Fargo Bullish On Product Cycle
AMD's new product launch should give investors increasing confidence in its product cycle setup and data center market share gains in 2019 and beyond, Rakers said in a Wednesday note.
The new 7nm CPUs and GPUs could become increasingly important against the backdrop of a slowing in Moore's law and increasing need for parallelized input and output, the analyst said.
The Price Action
AMD shares were up 4.93 percent at $21.70 at the time of publication Wednesday.
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