Advanced Micro Devices (NASDAQ:AMD) shares climbed about 3% Friday after analysts flagged Intel’s (NASDAQ:INTC) ongoing market?share losses to AMD. That’s why investor confidence rose on expectations that AMD keeps grabbing business from its larger rival.
J.P. Morgan analysts noted Intel’s shift toward a more fabless model won’t pay off for another 1824 months, leaving AMD to reinforce its position with Ryzen and EPYC platforms. They see sustained momentum in AMD’s server?CPU shipments as cloud providers and enterprises favor its cost?efficient designs.
Morgan Stanley chimed in, pointing to Intel’s margin pressures from startup costs and restructuring charges. That contrast boosts AMD’s near?term outlook: its higher gross margins and leaner expense base paint a more resilient picture.
Market watchers also highlight AMD’s expanding GPU lineup as a secondary growth driver, with generative?AI workloads fueling demand alongside NVIDIA (NASDAQ:NVDA). As Intel grapples with transition costs, AMD stands to pick up share in both PC and data?center markets.
With analysts’ price targets generally above current levels, AMD’s stock rally underscores a broader semiconductor shift, smaller players seizing ground as incumbents navigate costly transformations.
This article first appeared on GuruFocus.