Advanced Micro Devices has been grabbing market share from beleaguered rival Intel in PC and server processors. And that's bolstering the bull case for AMD stock.
In the second quarter, AMD took 23.9% of the PC chip market in units and 27.8% share in revenue, according to Mercury Research. Its market share in the year-earlier period was 21.1% in units and 18% in revenue.
In server processors, AMD claimed 27.3% of the market in units and 41% in revenue, Mercury said. That's up from 24.1% and 33.8%, respectively, in the same quarter last year.
AMD's market share gains "are starting to raise some eyebrows," Bernstein analyst Stacy Rasgon said in a client note Tuesday. Still, Rasgon reiterated his market perform rating on AMD stock.
On the stock market today, AMD stock dropped 5.4% to close at 166.55. It has fallen for four straight trading sessions after notching a 52-week high of 186.65 last Wednesday.
Upcoming AMD Stock Catalyst
A potential catalyst for AMD stock is the company's 2025 financial analyst day on Nov. 11 in New York City. At the event, AMD plans to reveal details of its technology and product roadmaps beyond what it disclosed at its Advancing AI event this summer.
AMD stock ranks No. 8 out of 40 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 96 out of 99.
Further, AMD stock is on the IBD Tech Leaders list.
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