Shares of chip maker AMD (AMD) are trading higher on Monday after an analyst said he believes shipments for the chip maker’s CPU line may have tracked ahead of the company’s guidance. SURPRISE UPSIDE: Stifel analyst Kevin Cassidy said in a note to investors that he believes AMD’s Zen-based PC CPU line up “tracked in-line to slightly better than management’s guidance.” EPYC SERVER CPU: According to Cassidy’s note, the unexpected upside may be seen coming from AMD’s Epyc server CPU business doing better than the consensus view of 5% unit market share leaving the fourth quarter. Moreover, the analyst anticipates gross margin to grow in Q4 as the company “ramps new products, particularly its Epyc server CPUs.” The analyst increased his 12-month price target on AMD to $21 from $17 and maintained a Buy rating. PRICE ACTION: Shares of AMD are up 3.5%, or 57c, $16.84 in early afternoon trading.
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