AMD is set to benefit from strong growth in the VR hardware segment as the company already commands 83% share of this market.
AMD’s VR graphic cards are cheaper than the competition, which is why the company has been able to create a strong position for itself in this market.
If AMD continues holding 80% of the VR market in 2020, it will be able to sell over 50 million GPUs to power these devices, leading to $10 billion revenue.
Including the VR opportunity, AMD could deliver $14 billion in revenue by 2020, which will lead to 240% upside in the market cap at its price-to-sales multiple.