Advanced Micro Devices (NASDAQ: AMD) shares led semiconductors higher to end the week as analysts praised the company’s new server chip, noting the Dr. Lisa Su-led company has continued to pressure on Intel (NASDAQ:INTC) in the valuable market.
Wedbush Securities analyst Matthew Bryson, who has an outperform rating and $100 price target on AMD (AMD), noted that the company could have “mailed it in” with its latest offering and still been competitive with Intel (INTC), but it delivered “significant upgrades” compared to Intel’s offerings.
“In turn, for now this leaves Intel competing against even more robust competition with an Ice Lake platform that struggled to hold share vs. Milan,” Bryson wrote in a note to clients. “And while Sapphire Rapids should be more competitive than Ice Lake, we believe it will still fall well short of Genoa on power and performance when it arrives.”
AMD (AMD) gained more than 6.6% in mid-day trading to $73 on Friday, its highest levels in more than a month.
Conversely, Intel (INTC) also rose, gaining 2.4% to $30.58. AMD competitor Nvidia (NVDA) gained nearly 3% to trade at $162.52.
Semiconductor equipment maker ASML Holding (NASDAQ:ASML) gained nearly 2.5% to $574.54 after it held its investor day where Chief Executive Peter Wennink said the company’s outlook over the next several years would not change even if China were excluded.
Speaking to investors, Wennink said that he did not expect the geopolitical situation to have China be “absolutely” excluded from any growth, but if it were, the demand would move elsewhere.
“The fabs would be built somewhere else,” Wennink was quoted as saying, according to Reuters. “There could be a temporary hiccup. But ultimately those chips need to be made. So it doesn’t change the 2030 picture that much.”
ASML competitors also saw gains on Friday, as Applied Materials (AMAT), Lam Research (LRCX) and KLA Corp. (KLAC) gained between 3% and 6%.
Other chip stocks looked to end the week in the green, as Texas Instruments (TXN), Micron Technology (MU), Broadcom (AVGO) and several others tacked on 2% or more.
Following its third-quarter results, investment firm Mizuho said AMD (AMD) has continued to see strength from its data center and gaming product lines, despite weakness in its PC unit.