AMD’s stock closes at 10-month high after analyst price hike, Cisco adoption

Progressed Micro Devices Inc. shares mobilized to their most noteworthy cost in 10 months Friday after one examiner climbed his value focus on the chip creator and Cisco Systems Inc. declared it was utilizing AMD contributes a line of servers that had beforehand utilized Intel Corp. chips solely.

AMD, +4.88% shares surged 4.9% to end at $14.40, their most astounding close since July 26, when shares completed at $14.76. The rally took after a value target climb from Stifel investigator Kevin Cassidy, who has a purchase rating on AMD. Cassidy raised his value focus on the stock to $17 from $14. The last time shares even wandered past the $14 check was back in late October.

In correlation the PHLX Semiconductor Index SOX, +2.34% rose 2.3% on Friday and the S&P 500 list SPX, +1.08% increased 1.1%.

AMD's stock has increased 40% on the year, contrasted and the almost 13% ascent in the SOX list, yet finished the previous a year the execution of AMD and the SOX is nearer with AMD up 32% and the SOX up 29%.

Cassidy upheld his value climb on the view that "AMD's EPYC server CPU is winning server plans and AMD's more extensive PC CPU offering will enable AMD to outflank the market."

"We trust AMD's EPYC processor will start to pick up footing in the second 50% of the year to meet administration's objective of leaving 2018 with mid-single digit piece of the overall industry contrasted with under 1% in the second 50% of 2017," Cassidy said.

For instance of developing footing for EPYC chips, Cassidy indicated their utilization in one of Cisco Systems Inc's. CSCO, +2.22% new server stages.

Read: AMD stock hops after investigator redesigns 2 months in the wake of turning bearish

On Thursday, Cisco reported in a blog entry that its new multi-hub server, the UCS C125 M5 Rack Server Node, was manufactured utilizing EPYC chips. As far as concerns its, Cisco's stock completed 2.2% on Friday.

"We picked AMD EPYC server processors for the primary hub of the UCS 4200 stage because of the design cooperative energy with the workloads our clients need to control with this kind of shape factor," said Kaustubh Das, VP of system and item improvement for capacity at Cisco, in the blog entry.

"[Cisco and AMD] anticipate that the stage will be accessible in the second 50% of 2018," Stifel's Cassidy said. "We accept other server OEMs have understood the advantages of EPYC and will make comparative declarations soon." notwithstanding the objective value climb, Cassidy raised his balanced profit gauge for the year to 50 pennies an offer on income of $6.73 billion from 47 pennies an offer on income of $6.65 billion.

Experts studied by FactSet evaluate entire year balanced income of 46 pennies an offer on income of $6.7 billion, as indicated by FactSet.

Following Cowen and Co's. yearly Technology, Media and Telecom gathering this previous week, expert Matthew Ramsay, who has an outflank rating and $18 value focus on AMD, said he was additionally energized by Cisco's utilization of AMD contributes servers that had, up to this point, solely utilized Intel Corp. INTC, +3.41% chips. Intel shares additionally indicated solid increases, completing 3.4% on Friday.

Supposition: New AMD chip follows $10 billion market that Intel rules

"While AMD's objectives to twofold PC piece of the overall industry, and accomplish twofold digit server unit share are forceful, we trust this vital new focused dynamic amongst AMD's and Intel's assembling base make these objectives significantly more practical," Ramsay said in a note.

"Further, with AMD fabricating base more expanded, we trust a feasible item guide, without execution hiccups, is altogether more probable and remains a sharp focal point of AMD administration," he said. Ramsay is expecting entire year income of 51 pennies an offer on income of $6.96 billion.

Of the 31 experts who cover AMD, 13 have overweight or purchase evaluations, 13 have hold appraisals, and five have underweight or offer evaluations. With the Stifel target value climb, the normal target cost from experts is presently $14.16 an offer.