Shares of AMD climbed more than 7% as two optimistic analysts chimed in regarding the prospects of the company’s new Ryzen 7 chips. First, Jefferies analyst Mark Lipacis reiterated his buy rating on AMD stock, but also increased his per-share price target to $16 from $13. To justify his bullishness, Lipacis noted AMD’s Ryzen 7 (which was launched on March 2, 2017) and Ryzen 5 (which will be available on April 11, 2017) processors should help the company take significant market share considering they offer comparable performance and more attractive pricing than similar chips from Intel. Lipacis further cited the potential for further share gains and revenue growth to come from the launch of AMD’s more affordable Ryzen 3 processors later this year, noting they believe the company is still “in the early innings of its multi-year turnaround story.”
And AMD received more love in a separate note today from Susquehenna’s Christopher Rolland, who maintained his own neutral rating on the stock but similarly increased his per-share price target to $12 from $9. Rolland outlined his belief that AMD is likely to exceed Wall Street’s consensus revenue expectations in the coming quarter thanks to the Ryzen line’s ongoing rollout, especially as sales to larger PC original equipment manufacturers like HP and Dell should commence as early as next month.