Analysts forecast significant earnings for amd in the second half of the year

AMD's stock has added to the bullish outlook of a team of analysts who see future positive gains at the Santa Clara, California-based company. AMD shares gained almost 2% on Monday after rising 5% on Friday to reach their highest level in 10 months. At a price of $ 16.58, semiconductor market stocks reflect a 61.3% gain so far this year, far outpacing the overall 4.7% rise in the S&P 500 over the same period.

New AMD Releases Will Boost Your Profits

Analysts predict the new chips will boost AMD's profit margins in the third quarter. On Friday, Stifel analyst Kevin Cassidy raised his 12-month price target on the stock to $ 21, up nearly 27% from $ 17 at the close on Monday. Cassidy's strength in AMD's EPYC server CPU business, with winning server designs.

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On Thursday, IDC released preliminary results showing shipments of traditional desktops, laptops and workstations increased 2.7% in the second quarter, compared to the same period last year, marking the growth rate more strong in the industry in over six years. This increase in shipments will help AMD to market more processors. Cassidy expects AMD's third-quarter gross profit margin to increase from 37% in Q2 to 37.7% in Q3.

We expect AMD to benefit from stronger-than-expected results, especially given trends for high-end business, gaming, and notebooks, all markets where AMD has enhanced its competitive position through its Ryzen processors.

The analyst added that AMD should be able to steal CPU market share from Intel in both the home and server sectors.

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