Advanced Micro Devices leads chip gains as Intel looks to Italy for help
Advanced Micro Devices (NASDAQ:AMD)$AMD(AMD)$
Baird analyst Tristan Gerra, who recently downgraded Intel (INTC) after the company's disappointing second-quarter, noted that AMD (AMD) is likely to see further gains in the server market due to product delays at the Pat Gelsinger-led Intel (INTC).
"Intel's further push out of Sapphire Rapids, which is rapidly becoming a stale product before even launching, likely significantly accelerates server customer migration to AMD in 2023 in our view, and we expect meaningful market share gains as a result," Gerra wrote in a note to clients.
Gerra added that AMD's (AMD) fundamentals "continue to strengthen" and even though it is not immune to a slowdown in the PC market and consumer GPUs, is well positioned.
AMD (AMD) shares gained nearly 6% to $103.83 in mid-day trading, while competitor Nvidia (NVDA) tacked on nearly 1.5% to $191.64.
Advanced Micro Devices (AMD) slipped on Wednesday as concerns over third-quarter guidance outweighed the company's strong second-quarter results.
Intel (INTC) fell more than 1.5% to $36.63 even as the company is reportedly close to a $5B deal with the Italian government to build a packaging and assembly plant in the country.
The Italian government could fund as much as 40% of Intel's (INTC) investment in the country, Reuters reported, with the figure rising from $5B over time.
The plant is part of the semiconductor giant's plan to invest $88B in Europe over the next decade and both parties hope to have a deal in place by the end of August.
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