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AMD Set To Drop Or Rally Into Earnings? – Advanced Micro Devices, Inc. | Seeking Alpha

Summary

  • 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.

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AMD Set To Drop Or Rally Into Earnings? – Advanced Micro Devices, Inc. (NASDAQ:AMD) | Seeking Alpha.