5 Takeaways From AMD (AMD) Analyst Day - Cowen

Cowen analyst Matthew Ramsay reiterated an Outperform rating and $60.00 price target on AMD (NASDAQ: AMD) after attending the company's analyst day where he recognized 5 takeaways:

1) Investors largely no longer question whether or not AMD will gain material x86 share or deliver upon its roadmaps, and management is able to focus conversations around technological leadership and competitive roadmap positioning.

2) AMD's new target model satisfied long-term investors with guidance for 20% annual growth CAGR, up from 14% the last five years. This demonstrates continued/consistent share gains across its target markets, and implies AMD will continue to profile as one of the top organic growth stories
in semis.

3) AMD provided an updated $79B 2023 TAM consisting of $35B datacenter ($19B server CPU; $5B Telco/infrastructure; $11B DC-GPU), $32B from PC CPUs; and $12B from gaming (console and discrete GPU).

4) AMD impressively noted 3rd Gen Ryzen Desktop and 2nd gen Ryzen Mobile has driven 2018->2019 gains across: unit shipments (31M to 43M), ASPs (~+6% - ~+14%) and market share (13%-17%). Growth was also illustrated in the Notebook space, with management highlighting key performance improvement specs for the Ryzen Mobile 4000 series as compared to Intel’s Core i7; +4% in single-thread (important), ~90% in multi-thread, and a ~28% graphics performance improvement, allowing for market share growth of 12% in 2018 to 16% in 2019 and enabling platform momentum from 85 in 2019 to 135+ in 2020.

5) While acknowledging the fluidity of the situation, AMD still expects its 1Q results to come within its $1.8B +/- $50M range, though possibly in the lower half.

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 $49.22 yesterday.

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