The biggest beneficiary of Intel Corporation's (NASDAQ:INTC) 7nm product delay is archrival Advanced Micro Devices, Inc. (NASDAQ:AMD), and an analyst at BofA Securities hiked their AMD price target Monday on this premise.
The Semiconductor Analyst: Vivek Arya reiterated a Buy rating on AMD shares and increase the price target from $65 to $77.
The AMD Thesis: The 7nm delay could accelerate AMD market share gains back toward their historical peaks of 20% for PC and 25% servers, up from 17% and 10%, today, Arya said in a Monday note. (See his track record here )
AMD is on track to achieve earnings power of $3-plus by 2023, suggesting a CAGR of 43%, the analyst said.
Given elevated expectations going into AMD's earnings report on Tuesday, there could be some profit-taking, Arya said.
The analyst said he has higher confidence in AMD's medium/longer-term prospects.
Intel's Q2 Outperformance Positive For Computing Peers? Intel delivered a strong second quarter thanks to solid cloud and resilient PC segments, Arya said.
This bodes well for compute peers AMD, and Xilinx, Inc. (NASDAQ:XLNX), which is due to report Thursday, the analyst said.
AMD, INTC, XLNX Price Action: AMD shares were trading down 0.89% to $68.78 at last check Monday, while Intel shares were down 1.06% at $50.06.
Xilinx shares were trading 3.77% higher at $106.53.