AMD's (AMD) new processors will enable it to gain significant market share from Intel (INTC) in the desktop, notebook and server markets, predicted research firm Jefferies. The firm raised its estimates for AMD and expects the chip maker's 2017 results to beat expectations by a significant amount.

AMD ZEN PROCESSORS: AMD's new Ryzen processors are 52% faster than the company's previous generation of processors, according to Jefferies analyst Mark Lipacis. Moreover, AMD's benchmarks show that its R7 1800X processor "performs better than Intel's Core i7 6900K at less than half the price," the analyst stated. Given these metrics, AMD's market share gains will accelerate. AMD is looking to eventually obtain market share of at least 10%, wrote Lipacis.

ESTIMATES, TARGET: AMD will obtain 1% of the desktop, notebook and server markets this year and 4% of those markets in 2018, the analyst forecast. He thinks that the company's new higher margin processors will boost its gross margins by three percentage points this year, and he projects that AMD's 2017 earnings per share will beat expectations by 17c. Lipacis raised his price target on the shares to $16 from $13.

PRICE ACTION: In morning trading, AMD jumped 6% to $14.34 per share. Over the last year, AMD shares have surged nearly 400%, as the stock was trading at $2.83 as of April 1, 2016.