12/31/19 Happy New Year!

As reported by thefly.com, Hans Mosesmann of Rosenblatt Securities had upgraded PT for AMD, from $52 to a whopping $65! Thanks to Reddit user Long_on_AMD, the complete note by Hans can be read here. Hans is now projecting earnings of $2.62 for 2021!

[We like the setup for a strong back half of 2020 on the early ramp of new Microsoft (MSFT: NR) and Sony (SNE: NR) game consoles, which we are conservatively modeling for an over 40% y/y increase in 2020. We believe AMD is poised for P/E multiple expansion in 2020 and thus, take our 12-month PT from $52 to $65. Our $65 12-month price target is based on a 25x P/E multiple (prior multiple was 20x) on our existing FY2021 EPS estimate of $2.62. ]

This is all very bullish. I do believe most of what Hans is anticipating have not yet been “priced in” by the majority of the street. Certainly by Q3 2020 ER (late October 2020), the whole year 2020 earnings will be pretty much set. By that time, projection for 2021 will be fully formed. PS5, MS XBox and Milan will all be launching. AMD in the 60’s is very probable.

On the GPU front, rumors of Radeon RX 5600XT are coming out, as described in Forbes, Videocardz, and Tom’sHardware. The big Navi is also being mentioned, likely coming as Radeon RX 5800XT. The next gen datacenter GPU MI100 is also highly anticipated. After all, the current MI50 and MI60 have been around for more than a year now.

Notebookcheck gave a very favorable review of the Lenovo IdeaPad S540-13API, featuring the Ryzen 5 3550H APU. Renoir the next gen 7 nm mobile APU will do even better in 2020.

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