- The May results indicate cloud instances resumed solid sequential growth driven by computing processors as per KeyBanc analyst John Vinh.
- He noted that the growth was led mainly by Intel Corp INTC instances, while NVIDIA Corp NVDA and Advanced Micro Devices, Inc AMD instances increased modestly.
- Ice Lake primarily drove INTC CPU instances. NVDA GPU instances grew led by the ramps of Ampere, mostly at Alibaba Group Holding Limited BABA.
- AMD CPU instances increased with Milan deployments.
- Vinh views these results as moderately positive for INTC, given modest share gains in the cloud for the first time since September 2021.
- Vinh maintained an Overweight on AMD with a price target of $150 (80% upside).
- Vinh maintained a Sector Weight and a price target of $40 on INTC (7% upside).
- Vinh maintained an Overweight with a price target of $250 on NVDA (53% upside).
- Price Action: AMD shares traded lower by 1.35% at $82.62 on the last check Thursday.
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