Investors should buy Advanced Micro Devices shares because the company's earnings this year will come in above Wall Street's expectations, according to Jefferies, which reiterated its buy rating on the chipmaker.
"We increase our sales estimates with better visibility into AMD's Ryzen 7 high performance and Ryzen 5 power-performance desktop processor launch. We think AMD's ability to price between-the-seams while achieving competitive performance will result in meaningful share gains from INTC in the Desktop, Server, and Notebook markets starting in 2017," analyst Mark Lipacis wrote in a note to clients Monday.
The company's shares more than quadrupled in the past 12 months through Friday on anticipation of its new gaming graphics and processor chips. AMD is up 7 percent midday Monday after the analyst's report.