On Tuesday, Mercury Research published a first quarter CPU volume and pricing data report, showing that AMD (NASDAQ:AMD) gained further ground in the x86 server CPU market.
Analysts at Goldman Sachs expect AMD’s share gains to accelerate in the second half of this year and 2025 as traditional server demand begins to recover, albeit off a low base.
"Recall, as highlighted by management on its recent earnings call, a) Turin is expected to give the company access to a broader set of data center workloads, and b) there are ~30% more platforms in development by AMD’s OEM partners based on Turin than on Genoa (4th-generation EPYC server CPU; based on AMD’s Zen 4 architecture and manufactured on TSMC’s N5 node)," explained analysts at Goldman Sachs.
"While a step increase in Data Center GPU revenue expectations is likely required for the stock to revisit its March highs, we maintain our Buy rating on the stock, and expect consistent gross margin expansion driven by improving product mix and healthy opex leverage to drive positive EPS revisions and, ultimately, stock price outperformance," they added.
The investment bank currently has a $175 per share 12-month price target on AMD shares.