Advanced Micro Devices, Inc. (NASDAQ: AMD) shares are down slightly under 5% during mid-day trading on Thursday, January 12th. Despite being down 5%, the company’s market cap is still hovering around 10 billion.
According to Johnie Zigler at Traders350, AMD stock has traded at a price suggestive of $10 billion valuation twice in the firm’s history.Analysts believe a 10 billion market cap valuation is appropriate heading into the release of Zen and consider its stock to outperform the semiconductor market in 2017.
AMD has a high potential to continue climbing in 2017. If you go by the additional information shared by AMD about its upcoming Ryzen series at CES 2017, it appears it will continue to climb.
I believe that AMD’s Ryzen chip will help win some of Intel’s territory. Intel has about 80% market share of the PC market. AMD is Intel’s closest competitor with a market share of less than 20%. And with plenty of initial positive buzz about AMD’s Zen series, this could be the year where the company’s PC division makes significant profits if Zen CPUs are successful. In conclusion, it’s a good time to be bullish on AMD stock and wait for the launch of AMD’s ZEN CPUs, which are expected to arrive in the first half of 2017.