Jefferies analyst Mark Lipacis reiterates his $19 price target and Buy rating on Advanced Micro Devices (NASDAQ:AMD) after a positive meeting with CEO Lisa Su and SVP Ruth Cotter.
Lipacis cites positive comments on the ability of the server MPU called EPYC achieving the 40% to 44% gross margin target.
The analyst expects at minimum gross margins to expand 400 basis points with server share gains of 800 bps by the end of next year.
CY18 EPS estimate: $0.40 ($0.18 over Street estimate).
Previously: Semiconductor revenue totals $101.4B in Q2, AMD and Nvidia lead growths (Sept. 12)
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