The analyts see opportunities for the Santa Clara, Calif., company in intellectual property licensing, semi-custom chips, cloud gaming and supercomputers. The analysts maintained their rating of equal weight for the stock and boosted their target price to $32 from $30.
AMD shares traded at $32.09, up 3.62%.
"We believe they are likely to gain share in every segment next year, competing successfully with both Intel (INTC) - Get Report and Nvidia (NVDA) - Get Report , while spending a fraction of the R&D (research and development) that those two companies spend," the analysts wrote.
They see AMD's biggest gains coming in "Enthusiast desktop, but with less impact on enterprise desktop and mainstream desktop; servers for the largest scale cloud service providers, but with less impact on smaller server customers and OEMs (original equipment manufacturers); and data center graphics, primarily in cloud gaming."
AMD also should enjoy gains in notebooks, thanks to a 7 nanometer-chip launch early next year, the analysts wrote. "But we have seen historically that it can take the mobile business longer to ramp."
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This article is commentary by an independent contributor. At the time of publication, the author held a position in Intel.