Advanced Micro Devices, Inc.(NASDAQ:AMD) has been a loser in 2017. The cryptocurrency boom which boosted the stock seems to be losing its effect. In October, AMD beat Q3 results, but issued a weak guidance for the last quarter of 2017.
But there are several growth catalysts for Advanced Micro Devices, Inc.(NASDAQ:AMD) which are set to give a boost to the semiconductor stock in 2018. These catalysts are directly linked to the company’s core business, and have no relation to the temporary factors like bitcoin mining.
Wall Street is highly bullish on AMD’s EPYC processor line. Several PC companies are flocking to use EPYC chips in their products. AMD recently said that HPE’s ProLiant DL385 Gen10 server, which is powered by AMD EPYC processors, set world records for two key benchmark tests for SPECrate®2017_fp_base and SPECfp®_rate2006. Major companies including Intel, HP and Dell are using AMD’s EPYC chips in their laptops. EPYC is based on AMD’s Zen microarchitecture. The company is working on Zen 2 and Zen 3. Increased cores and performance will make EPYC even more attractive for the markets worldwide. Last month, AMD’s Ryzen won the famous Trusted Reviews 2017 award of the year for “PC Component of the Year” category.
Advanced Micro Devices, Inc.(NASDAQ:AMD) recently impressed Wall Street when it announced a new deal with rival Intel. AMD is partnering with Intel to design a new chip for laptops. This chip will be used in laptops that are especially designed for gamers. This way, AMD will get an edge over Nvidia, which has a huge market share. AMD has its own chip (Ryzen) for the consumers who want to get a general purpose laptop which can also run latest games.
Investment firm Jefferies said in a report recently that the chip made by Intel and AMD has chances of getting adapted by Apple for its new products in 2018. Stifel’s analyst Kevin Cassidy also believes that the latest partnership of Intel and AMD will have a “negative” effect for Nvidia.
On November 7th, Cannaccord analyst Matthew Ramsay reiterated his Buy rating and a price target of $20. The analyst said in his report that Advanced Micro Devices, Inc.(NASDAQ:AMD) deal with Intel is a strong “endorsement” of the company’s “graphics roadmap”. He is also bullish on Ryzen sales and sales coming due to the cryptocurrency factors. Ramsay also thinks that AMD is well on track for the development of 7nm chip development in the second half of 2018.
AMD is also improving its margins amid cost cutting and new production technologies.
Some other major growth catalysts for Advanced Micro Devices, Inc.(NASDAQ:AMD) stock include autonomous vehicle and AI. Earlier this year, reports suggested that Tesla was partnering with AMD to develop chips of its own for autonomous cars.