Hans Mosesmann is a Senior Research Analyst and Managing Director at Rosenblatt Securities Inc. Prior to joining the firm, he was an electrical engineer who spent a decade working at chipmakers Texas Instruments and Advanced Micro Devices before moving to Wall Street in 1996.
Mr. Mosesmann covers such companies as AMD, Intel, Micron Technologies and NVIDIA. Mr. Mosesmann spent a decade at Raymond James Financial covering the semiconductor industry.
Earlier, he worked as an equity analyst for several technology- and growth-company-focused boutiques, including Needham & Co., Volpe Brown Whelan and Soundview Securities, as well as Prudential Securities.
Mr. Mosesmann received a Bachelor of Science degree in electrical engineering from the University of Florida and an MBA in finance from Loyola University of Maryland.
In this 4,127 word interview, exclusively for the Wall Street Transcript, Mr. Mosesmann reveals his current outlook for semiconductor stocks and his top picks.
“My two top picks this year and for the next several years actually would be Advanced Micro Devices (NASDAQ:AMD) and Xilinx (NASDAQ:XLNX).
AMD historically goes through these processor cycles versus Intel (NASDAQ:INTC), where they’re able to gain important market share, as they did in 2006 when they captured 25% of the x86 market from low single digits in the previous three or four years.
And so we are in that cyclical process again, and in today’s case, AMD has a very, very good product line of processors that go into notebooks, desktops and servers.
They have an architecture that is actually better at the moment than what Intel has, and in AMD’s favor, they have a process technology leadership because now they’re using TSMC (NYSE:TSM) as a foundry.
Intel unexpectedly, if you look back several years ago, has had difficulty with process technology. They recently indicated that their three-year expectation is for them to grow their overall sales in the low single digits but incorporates what we believe are important declines in their microprocessor business.
So they are basically admitting or acknowledging that AMD is going to be gaining share. This is a tremendous opportunity, and it could double the size of AMD over the next several years.
AMD is also in a position to gain market share in the graphics market versus NVIDIA (NASDAQ:NVDA). They have kind of a dual thrust in terms of gaining share in markets where they have little or not meaningful market share.
And all these businesses are quite profitable. There are also new generations of game console introductions that will benefit AMD next year from Sony (NYSE:SNE) and Microsoft (NASDAQ:MSFT).
And recently, over the past week or two, the Department of Energy announced the first major exascale supercomputer, called Frontier, that will come online in 2021 and will support 1.5 exaflops of performance, which is six or seven times faster than the number-one supercomputer today.
Frontier will be based on both AMD CPUs and AMD GPUs with the help of Cray (NASDAQ:CRAY) supercomputer.
Read the full 4,127 word interview, exclusively in the Wall Street Transcript.