Despite a recent dip in investor sentiment due to a weaker earnings forecast, Benchmark Research has reaffirmed confidence in AMD's growth potential in the AI and PC markets. Analyst Cody Acree expressed optimism following discussions with AMD's CFO, asserting that the company is becoming increasingly competitive, particularly against Intel. Concerns arose when AMD's data center revenues fell short, yet plans to launch its MI350 AI accelerator earlier than anticipated signal strategic advantages. Partnering with Dell is also expected to significantly boost AMD's market share in commercial PCs, further solidifying its performance in the competitive landscape.
"We came away with further conviction in the company's strong fundamental position," Acree noted in a client report. He emphasized AMD's "increasing competitiveness in the AI market" and its market-share gains in both PCs and servers, particularly against rival Intel Corp.
Despite AMD's data center revenue falling short of Wall Street expectations, the announcement of the accelerated launch of the MI350 AI accelerator indicates strategic planning in response to market dynamics.
Benchmark also highlighted AMD's continued success in growing its server market share, as well as an expansion into the corporate PC sector through its partnership with Dell Technologies Inc. "Dell's ramp alone should drive a material increase in the company's commercial PC market share," Acree stated.
Acree concluded that AMD is closing the performance and timing gap with its competitors, especially following Nvidia's prior delay of its chips.
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