Why Are Analysts Raising Their Earnings Estimates for AMD?

Stifel’s analyst Kevin Cassidy raised his price target for Advanced Micro Devices (AMD) from $14 to $17 due to strong demand in the PC, graphics, and server markets. He even raised this year’s non-GAAP (generally accepted accounting principles) EPS estimate for AMD from $0.47 to $0.50, up 194% YoY (year-over-year) and higher than the consensus estimate of $0.46. Cassidy also raised his 2018 revenue estimate for AMD from $6.65 billion to $6.73 billion, up 26% YoY and higher than the consensus estimate of $6.7 billion.