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Advanced Micro Devices (AMD) reports its third-quarter earnings Wednesday, and analysts are bullish on the chipmaker’s quarter and its prospects for next year.

The Street is looking for earnings of 12 cents per share on revenue of $1.7 billion, according to FactSet.

Jefferies analyst Mark Lipacis is optimistic AMD will post good results, citing recent chip shortages from rival Intel (INTC), which will report earnings Thursday. Lipacis reaffirmed his Buy rating on AMD.

“We think AMD could surprise positively” and that it “benefits from INTC capacity constraints,” Lipacis wrote on Tuesday. “We also believe that with the combination of its capacity constraints and delay of its 10nm manufacturing process, INTC has opened the door for AMD to gain share in both servers and PCs—near and long term.”

Last month, Intel admitted to “tight” supply conditions for its chips due to better-than-expected PC sales. The chipmaker also said it was “making progress” and expects “volume production” under the 10-nanometer process in 2019.

Intel has suffered from repeated delays in moving to the 10nm chip-manufacturing technology versus its chief rival AMD, which expects to produce 7nm server chips next year.

One nanometer equals one-billionth of a meter. Smaller nanometer chipmaking technologies historically have allowed companies to create faster, more-power-efficient chips.

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AMD shares have soared this year on rising expectations it will gain market share from Intel due to its increasingly competitive chip technology. Its stock is up about 140% this year versus the S&P 500’s approximate 2% gain. AMD traded down 1% on Tuesday to $24.79.

Rosenblatt Securities analyst Hans Mosesmann also reiterated his Buy rating and $40 price target for AMD on Tuesday, predicting strong sales for its desktop PC processors.

And in a third vote of confidence for the quarter, UBS analyst Timothy Arcuri raised his price target for AMD to $25 from $17 on Sunday. The analyst expects the company will post another “solid” financial report that will make investors more confident about its market share gain story. He reaffirmed his Neutral rating for AMD due to the stock’s valuation.

Write to Tae Kim at tae.kim@barrons.com