AMD Stock ( NASDAQ:AMD )
Bernstein downgraded the semiconductor manufacturer AMD ( NASDAQ:AMD ) on Tuesday, citing a persistent downturn in the PC industry as the reason for the downgrade. AMD stock fell roughly 2.5% in premarket trade.
Analyst Stacy Rasgon changed the firm’s rating on AMD stock from buy to market perform and lowered the price target per share from $95 to $80. She did this because the PC market has worsened since the firm upgraded Dr. Lisa Su’s company in February 2022. In addition, the idea that AMD would be “significantly more resilient” to channel weakening than its rivals, notably Intel (NASDAQ:INTC), is untrue. This view has been disproven.
In a letter to clients, Rasgon said, “…in recent months, we have been increasingly more apprehensive of possible PC dynamics, both given the market forecast and worsened by Intel’s semi-destructive conduct as they utilize both pricing and capacity as a strategic weapon, continuing to ownership even despite wider breakdowns in the sector.”
In addition, Rasgon said that recent AMD personal computer (PC) components had been subjected to “severe reductions” at retail since they were released less than two months ago. This, in conjunction with increased expenses, poses a potential threat to the firm’s gross margins.
According to Rasgon, “Street calculations call for gross margin increase continuing forward into the [second half], which would be fairly optimistic should present client patterns prove transitory (we are not convinced they are),”
Rasgon pointed out that AMD has continued to s...
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