(MENAFN- Baystreet.ca) Advanced Micro Devices (NASDAQ:AMD) is poised to move higher in the months ahead. Valuations are stretched and will scare away bargain hunters. But the revenue momentum is building. And while Intel (NASDAQ:INTC) continues to lift its outlook, the market is big enough for both players to thrive in the PC desktop and server space. AMD has a pair of new chip releases that will jump-start growth further.
AMD is launching two 3rd-generation Ryzen Threadrippers. The 3960X has 24 core/48 threads while the 3970X has 32 cores and 64 threads. Ryzen 9 3950X will have 16-core and 32-thread processing. The $49 budget chip may help AMD take Intel's market share but sales growth for the up to $1,999 chips will offer the most upside.
AMD is building on strong growth in demand for its 7nm processors. Intel is stuck supply at 14nm or higher. It managed to raise its outlook because the market can absorb the supply from both companies. In the long-term, AMD's debt level will fall and cash flow will grow. From there, AMD will have more marketing muscle to start taking meaningful market share away from Intel.
EPYC is still the biggest contributor to profit margin. The company still needs bigger orders to lift AMD stock higher.
Continue holding AMD stock.
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