AMD stock tanked earlier this month after the company announced on Jan. 11 that its computer chips were susceptible to the Specter vulnerability, which is a part of the recently revealed Meltdown and Specter security vulnerability report. However, analysts believe that the latest dip is a great buying opportunity as AMD stock is poised to gain value in 2018.
The biggest reason AMD will grow is because its main rival, Intel, is experiencing many problems. Almost every Intel chip is vulnerable to the Meltdown and Specter security vulnerability. Research proves that any patch to fix the Meltdown vulnerability slows down computers by 30%. This means that Intel users will soon start ditching the company for other alternatives, the most prominent of which is AMD.
AMD recently admitted that its machines were prone to attacks only because of the Specter vulnerability. However, researchers believe that hackers might not be interested in the Specter vulnerability because it takes a lot of time and resources to breach a computer using the Specter vulnerability. AMD has a clear advantage over Intel.
One of the biggest catalysts for AMD is GPU sales amid cryptocurrency mining. Recently, Susquehanna analyst Christopher Rolland said in a report that AMD sales in the holiday season of 2017 and the initial phase of 2018 will remain strong. Rolland also added that the company’s revenue will get a huge boost amid these sales. It is also important to note that unlike the general market, cryptocurrency sales are neither temporary nor fickle. They are here to stay as the demand for mining will increase further amid the blockchain revolution. AMD is facing huge demand for its GPUs around the world.
AMD’s product line also remains strong and robust. At the CES 2018, AMD revealed several new products, including Ryzen mobile APUs, Radeon Vega, and Vega Mobile, and updates regarding 12nm ZEN+, 7nm ZEN2 and 7nm+ ZEN3. AMD also revealed that Google Cloud and Amazon AWS are now using EPYC server chips.
AMD also announced massive price cuts for its Ryzen chips at the show. The timing of the announcement couldn’t be better, as Intel customers around the world are currently hesitant to upgrade their systems to new Intel chips. Big discounts on AMD chips will woo people to buy more.