Amd's shares soar as they forecast the 7nm boom

AMD has seen its shares skyrocket over the course of the day after an analyst issued a "buy" rating on the shares citing a strong future for the company's 7nm products.

Expect high performance from AMD Ryzen, EPYC and Navi 7nm GPUs

David Wong is an analyst at Instinet and today started coverage of AMD with a target price of $ 33 per share, representing a 15% rise from today's close of $ 29.02.

Once the news of Instinet's coverage spread, investors rushed to buy shares, resulting in a trading volume of 113 million shares a day, well above the 10-day average volume of 68 million. of actions. Prices rose more than 12% at lunchtime before relaxing a bit, to around 8% on the day during the afternoon hours.

Visit our guide on the best processors on the market

The analyst sees growth in some key areas for AMD, focusing primarily on the company's next 7nm products. For example, the analyst says that EPYC's market share will more than double from 3-4 percent today to 10 percent in the near future. The analyst believes that x86 laptops and desktops will grow almost half in the next year due to the next third generation of Ryzen products and, finally, although AMD has been greatly affected in GPU shipments, the The next generation of Navi products, expected by the end of this year, is seen by the analyst as very promising.

GPU market share could increase from less than 20% today to more than 30% once Navi has saturated distribution channels.

Shares increased further after Digitimes reported that several major PC manufacturers spoke of an increase in processor and graphics card sales to close the second half of 2019. DigiTimes also reported that TSMC has seen a large increase in orders. of 7nm wafers and of course we can assume that many of them are AMD products.

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