Stefan Mileschin

If it can claw back 10 per cent of the server market it will be in clover

AMD had a pretty good year this year, but that did not appear to do much for its share price which remained fairly static.

Wall Street thinks that its stock is risky because the outfit has low and fluctuating margins. However some analysts think that the launch of its EPYC line of server processors earlier this year to compete with Intel which has long dominated this market.

In fact word on the street is that the initial traction and reviews have been positive, and this could present AMD an opportunity to grab some share and give a boost to its valuation.

If the numbers pad out, AMD could add 25 per cent to its value by being more aggressive in the server market.

Forbes is predicting that of AMD gains a 10 percent share in the server processor market, it would imply a nearly 25% upside to its EPS, which would drive a similar upside to our price estimate assuming the valuation multiples remain constant.

http://fudzilla.com/news/processors/...amd-to-go-epyc