- Recently announced Ryzen 5 series pricing suggests better pricing mix in the volume segment of the PC market.
- AMD’s pricing strategy is very aggressive, and if Intel were to match AMD’s current pricing curve, it would diminish Intel’s gross margins too substantially.
- Furthermore, we anticipate better than expected MPU share gains versus Intel, because of lower-end MPU pricing, which still impact AMD’s gross margins favorably.
- Recent price action looks bearish, when viewing the pricing data in isolation. But, given the near-term impact of AMD’s earnings release, we would be buyers here.
- As such, we maintain our positive stance on AMD, despite volatility leading into Q1’17 earnings announcement.
Read complete article here: