Advanced Micro Devices’ strength in the third quarter sets the company up for successful growth in the $ 50 billion processor market, Bank of America said Wednesday

The semiconductor producer said profits and revenue higher than analysts’ estimates on Tuesday The company also raised its revenue growth forecast for the current quarter to 41% from 32% Sales of robust servers and demand for AMD-fueled gaming consoles fueled the outperformance

Analysts Led By Vivek Arya Raised Their Price Target For AMD Shares To $ 110 From $ 100 Due To Encouraging Third Quarter Results The new target involves a 44% rise from Wednesday’s closing level over the next 12 months AMD’s continued expansion in the chip market makes the company an “idiosyncratic share winner” as its biggest competitors are lagging behind, the team said

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“We believe that AMD’s pipeline, management execution and opportunities are significantly improved by slippages at main rival Intel, which prepares AMD for significant share gains in the duopolistic processor market of $ 50 billion, “they wrote in a note to clients

According to bank estimates, AMD captured 13% of market revenue in the third quarter, up from 10% in the previous three-month period This share is expected to climb to 15% in the current quarter as AMD launches new PC servers and chips, the team added.

AMD’s third-quarter report also confirmed the company’s $ 35 billion acquisition of chipmaker Xilinx The deal is expected to close by the end of next year and give AMD A significant head start in communications technology sector The deal “is a good use of AMD’s premium valuation,” analysts said, and is expected to add $ 3 to company earnings per share by 2023

Nonetheless, the acquisition will likely fuel some volatility, they added AMD shares are up around 72% year-to-date, vastly outperforming the market as a whole Risks from trade tensions Chinese-American market and execution of its lofty goals could also hamper its short-term uptrend, the team said.

AMD traded at $ 78 19 per share as of 11:25 am ET The company has 22 “buy” ratings, 12 “hold” ratings and one “sell” rating from analysts, with a median price target of $ 6650

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Global news – FI – AMD to gain 44% more by increasing its share of semiconductor market, according to Bank of America