Following Advanced Micro Devices, Inc. (NASDAQ: AMD)’s announcement surrounding the availability on both Amazon.com, Inc. (NASDAQ: AMZN)’s Amazon Web Services and Microsoft Corp. (NASDAQ: MSFT)’s Azure, the company’s instance count is expected to accelerate, according to KeyBanc Capital Markets.
Analyst Weston Twigg reiterated a Sector Weight rating on Advanced Micro Devices; a Sector Weight rating on Intel Corp. (NASDAQ: INTC); a Sector Weight rating on NVIDIA Corp. (NASDAQ: NVDA); and an Overweight rating on Xilinx, Inc. (NASDAQ: XLNX) with a $90 price target.
Intel’s Skylake remains strong in the cloud data center ecosystem, Twigg said in a Sunday note. (See his track record here.)
Nvidia added seven regions, including its latest Volta processor, Twigg said.
Despite the addition of only one region this year, Twigg said he anticipates four new beta program completions from Xilinx as well.
KeyBanc's Instance Tracker shows the penetration of processor types, Twigg said.
"We expect INTC to remain the dominant processor type, but we see significant runway for AMD as it benefits from strong customer pull as well as competitive price and performance; we believe AMD could exit 2019 with over 15-percent server CPU share, up from around 1 percent currently.”
Nvidia should continue to expand across regions and is showing early traction with its new T4 processor, the analyst said.
"XLNX remains well-positioned to gain additional share as beta programs conclude, and we remain positive on its long-term growth potential in the cloud."
The Price Action
Advanced Micro Devices shares dropped 0.46 percent to $19.29 at the time of publication on Monday.
Baird Downgrades AMD: 'Expectations And Valuation Are High'
Stifel Raises AMD Price Target By 80%
Latest Ratings for AMD
|Oct 2018||BMO Capital||Maintains||Market Perform||Market Perform|
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