AMD Revenue Could Grow by Nearly 27% in Fiscal 2021, EPS to Rise 48%

AMD, whose share price nearly doubled in 2020, seems to have enough momentum to replicate its performance in 2021.

According to the research data analyzed and published by Finaria, AMD’s share price shot up by 99.98% in 2020. It ranks second out of 31 stocks on the IBD Electronics-Semiconductor Fabless Industry group. On the IBD stock checkup tool, it has a rating of 98 out of 99.

 The AMD stock is trading at $89.10 as of January 21, 2020. Based on a Wedbush Securities estimate, its share price could reach $110 by the end of 2021.

AMD’s Market Share of x86 CPU Market Set to Rise to 50% in 2021

According to Mercury Research data, AMD closed Q3 2020 with a 22.4% share of the CPU market. Compared to Q3 2019, that was an increase of 6.3 percentage points and was the company’s highest market share since Q4 2007.

Based on a Rosenblatt Securities projection, it could boost its x86 CPU market share to as high as 50% in 2021.

In 2020, AMD PC sales totaled 30 million, the highest figure on record since 2014. AMD projects that in 2021, its notebook PCs designed with AMD chips are set to increase by 50%. It expects over 150 new PCs running the new Ryzen 5000 processor, starting in February 2021.

Yahoo Finance states the company’s revenue could grow by nearly 27% in fiscal 2021 and its earnings per share (EPS) could increase by 48%.

On the other hand, AMD’s semi-custom business (gaming and server segments) revenue nearly doubled in Q3 2019, rising by 116% year-over-year (YoY) to $1.13 billion.

Notably, AMD powers the Xbox Series X and Sony PS 5 consoles. In only four weeks after its launch, Sony PS 5 sold 3.4 million units. A study by Mercury Research states that Intel holds 93.4% of the server market. By the end of 2021, it is estimated that AMD will grow its server market share to 20%.

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