AMD eyes $100 billion market cap as more analysts see market share grab from Intel - MarketWatch

Advanced Micro Devices Inc.’s stock soared to fresh records Tuesday after another analyst hiked his price target on the chip company, driving it to a market cap just shy of $100 billion.

The stock’s intraday high of $85.81 put the company at a market cap of more than $100 billion for the first time, and a close of $85.18 would have put AMD just over the $100 billion mark.

AMD’s stock last closed at a record $78.20 on July 30, fresh from AMD’s strong earnings and indications that the company’s market share gain from Intel Corp.

Intel shares, for their part, finished up 1.7% at $49.13, giving the company a market cap of $208.95 billion.

In late July, Intel said it was delaying the release of its 7-nanometer chips until at least late 2022 because of manufacturing issues.

In a Tuesday note, Jefferies analyst Mark Lipacis, who has a buy rating on AMD, raised his price target to $95 from $86.

Lipacis said he expects AMD share gains to accelerate, especially in the server market, with an estimated 30% share over the next two to three years, and 50% in four to five years.

In its recent earnings call, AMD said it had just reached 10% share of the server market.

BofA Securities analyst Vivek Arya, who has a buy rating, had forecast a $100 billion AMD in a Sunday note, after hiking his price target on the stock to $100.

Arya said AMD is well on its way back to its peak market share of 20% of the PC market and 25% of the server market as Intel struggles.

Of the 36 analysts who cover AMD, 15 have overweight or buy ratings, 18 have hold ratings, and three have sell ratings, with an average price target of $75.76, according to FactSet data.

which are up 91%, valuing the company at $276.20 billion.