AMD Tumbles On Downgrade| MENAFN.COM

Saturday, 04 February 2023 10:51 GMT

AMD Tumbles On Downgrade


(MENAFN- Baystreet.ca) AMD Tumbles on Downgrade









Advanced Micro Devices (NASDAQ:AMD) shares slipped after Bernstein downgraded the semiconductor manufacturer to market perform from outperform. The firm cited worsening personal computer market trends for the downgrade.
“It must be said that the PC environment has grown considerably worse since then,” Bernstein said in a note to clients.“And our belief that AMD would prove relatively more immune to channel degradation proved unfortunately incorrect, and in recent months we have been growing more wary of potential PC dynamics.”
Analyst Stacy Rasgon lowered the firm's rating on AMD to market perform from buy and cut the per-share price target to $80 from $95, noting that the PC market has continued to deteriorate since the firm's February 2022 upgrade of the Dr. Lisa Su-led company. Additionally, the belief that AMD would be 'relatively more immune' to channel weakness than its competitors, including Intel (NASDAQ:INTC), has proven incorrect.
Revenue in AMD's data center segment soared 45% year over year to $1.6 billion in the third quarter. Yet despite these impressive gains,
AMD's share of the server chip market still stands at less than 25%, compared to roughly 70% for Intel. This leaves plenty of room for AMD to expand its booming data center business in the coming years.
AMD shares began Tuesday's session down $1.28, or 1.7%, at $75.25.









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