AMD Aims for $9.80 on Llano & Brazos Despite CEO Overhang

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AMD's ( AMD ) stock has limped lower in the recent months due to uncertainty of how its chips will fare vs. its dominant rival Intel's ( INTC ) in addition to concerns over its replacement for CEO Dirk Meyer, which has been an overhang on the stock. While the CEO search continues, AMD's solid results and encouraging outlook for its Brazos and Llano chips is giving investors greater confidence that AMD can gain market share and add meaningful upside to its current levels.

We have revised our price estimate higher for AMD to around $9.80 , implying ~35% premium to the market price.

Brazos represents its APU line (APU is a hybrid of CPU and GPU) focused on the thin and light needs of the notebook & netbook market while Llano is an APU product line for mainstream notebooks and desktops. AMD stated during its earnings that the customer adoption for these products has been strong. The company also mentioned that it has won about 300 APU design wins and most of the top notebook vendors are shipping products based on AMD's Brazos and Llano chips.

We maintain our expectations regarding AMD's market share gains in notebook segment . We believe that positive results have somewhat been clouded by uncertainty around CEO appointment but over time, this should resolve and AMD's stock should get the much needed lift driven by continued adoption of AMD's hybrid CPU line.

See our complete analysis for AMD



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas , Stocks , US Markets

Referenced Stocks: AMD , INTC , NVDA

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