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Investing.com -- Advanced Micro Devices (AMD (NASDAQ:AMD)) is set to continue gaining market share in the PC CPU space, according to a recent Wells Fargo (NYSE:WFC) note following discussions with AMD executives.
The company’s CFO, Jean Hu, is said to have emphasized that "recent client CPU strength has been driven by share gains (expected to continue) and customers preparing for [a] refresh cycle in 2025 (Windows 10 EOL)."
Wells Fargo highlighted AMD’s strong performance in the PC market, noting that AMD’s client CPU shipments grew by 34% in 2024, significantly outpacing Intel’s estimated 7% growth in the same category.
The analysts also pointed to Dell’s recent announcement that it would incorporate AMD Ryzen processors in its next-generation Pro commercial PC lineup, calling it "a meaningful announcement" and a potential long-term growth driver for AMD.
In the server CPU market, Wells Fargo said AMD’s EPYC processors also gained share, with shipments rising 16% year-over-year in Q4 2024, while Intel’s Xeon server CPU shipments declined by 6% over the same period.
The bank noted that AMD has attained a record EPYC server CPU market share of approximately 28% exiting 2024, up from 25% in Q3.
While AMD’s stock may remain range-bound in the near term, Wells Fargo sees "an increasingly compelling risk-reward looking into mid-2025", with strong momentum in both client and server markets expected to continue.