What occurred

Shares of Superior Micro Gadgets (AMD 9.22%) jumped on Monday, following bullish analyst remarks. By the shut of buying and selling, AMD’s inventory value was up greater than 9%. 

So what

Barclays analyst Blayne Curtis positioned an obese ranking on AMD’s shares. He sees the chipmaker’s share value rising roughly 11% to $85.

Curtis expects AMD to wrestle away market share from rival Intel (INTC 3.59%). AMD’s high-performance and energy-efficient EPYC processors are notably nicely suited to the huge knowledge middle {industry}. Intel is the present chief within the world server market, but it surely’s been steadily dropping floor to AMD lately. 

CEO Lisa Su mentioned AMD’s new chips would assist prospects scale back the prices of their cloud-computing operations. In flip, Curtis thinks AMD can win extra enterprise from firms like Meta Platforms, notably because the social media big ramps up its metaverse-building investments later in 2023. 

Furthermore, Curtis believes Intel will not have a product that may compete successfully with AMD’s chips till 2024 — and probably at the same time as late as 2025. Intel has struggled with expensive manufacturing delays which have allowed AMD to leapfrog its beforehand industry-leading processor know-how.

Now what 

Income in AMD’s knowledge middle section soared 45% 12 months over 12 months to $1.6 billion within the third quarter. But regardless of these spectacular good points, AMD’s share of the server chip market nonetheless stands at lower than 25%, in comparison with roughly 70% for Intel. This leaves loads of room for AMD to broaden its booming knowledge middle enterprise within the coming years.