AMD stock was trading at $66.71 as of 12:45 PM EDT.
Due to the ongoing decline in the PC market and “increasing anxiety over data center demand,” Wells Fargo analyst Aaron Rakers lowered his projections for Advanced Micro Devices ( NASDAQ:AMD ) for the company’s three years. This caused the stock to decline on Wednesday.
Rakers, who rates AMD ( NASDAQ:AMD ) as overweight, stated that he is “surprised” by the lack of investor interest in the semiconductor business considering that it is well-positioned to continue expanding its market share and that its product plan is being executed well. Rakers asserted that the greater factor impacting investor enthusiasm has been a lack of faith in the sector as a whole.
In pre-market trading on Wednesday, AMD ( NASDAQ:AMD ) lost 1.6%, dropping to about $67 per share, or 53% below where it was at the beginning of the year. Rakers predicted that unless investors believe that the risks against the stock have decreased, the company’s shares “are likely to continue under pressure.” Rakers, for his part, has a price objective of $130 per share for AMD stock ( NASDAQ:AMD )
AMD Stock: Reasons Behind Today’s Huge Drop
Rakers noted that mid-single digit declines in the PC market are predicted for this year and mid-to-high teens for the next year. Additionally, there are “downside risks in AMD’s Data Center segment” as data center concerns grow .
AMD Stock Projections
Rakers consequently reduced his projected 2022 revenue and earnings to $25.5 billion and $4.11 per share from $26.2 billion and $4.32 per share. Additionally, he reduced his pr...
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