Jefferies Picks Up Positive Data Points On AMD (AMD) And NVIDIA (NVDA)

Jefferies analyst Mark Lipacis reiterated a Buy rating and $30.00 price target on AMD (NASDAQ: AMD) after visiting investors and companies in Asia and walking away with positive data points on AMD and NVIDIA (NASDAQ: NVDA).

Key takeaways:
1) Both CSPs and OEMs appear to be embracing AMD server MPUs
2) Intel 10nm mis-execution driving PC supply chain to AMD
3) NVDA GPU inventory clearing out, but supply chain waiting for price cuts on 2080/2070
4) Analog growth expected in 2019, driven by auto, datacenter and 5G basestations

AMD update: "AMD's server MPU appears to be getting embraced by many of the top cloud service providers (CSPs) and OEMs. Low cost 1U EPYC 2 OEM server models seem to be garnering a lot of interest in the market. AMD 7nm server MPUs are expected to see mass production in 3Q with initial shipments in August".

NVDA update: "There are no NVDA 1080 or 1070 cards in the channel, but there are 1050 and 1060 cards left. It appears that crypto-currency miners are selling their 1060/1050 cards into the secondary market at $40-$50, compared to the original price of $200-$220". "We heard that NVDA's latest high-end cards, the RTX 2080 and 2070 have very good performance but are not selling well because they are expensive, and that users are waiting for a price reduction".
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For an analyst ratings summary and ratings history on AMD click here. For more ratings news on AMD click here.

Shares of AMD closed at $26.24 yesterday.

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