We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Advanced Micro Devices, Inc. (AMD - Free Report) rating on the stock has recently been downgraded from “market perform” to “underperform” by research and brokerage firm Bernstein. Bernstein’s price target on the stock is $3 thereby indicating a 40% decline.
Why the Downgrade
Bernstein is not very optimistic about the stock in the near term as it thinks that the company’s new Zen chip sales will take at least one more year to ramp up.
Though the company reported better-than-expected performance in the first quarter, Bernstein thinks that’s not going to be repeated in the second quarter. The firm cited channel fills behind this expectation of a dismal performance.
Moreover, Bernstein thinks that speculations about learning (AI) and virtual reality (VR) sales are further pushing up growth expectations for graphics processing unit (GPU) sales that may not eventually materialize.
AMD shares increased nearly 150% so far in 2016 and this has increased the possibility of a downfall after such a long rally.
AMD is the second-largest producer of microprocessors, GPUs and chipsets in the world. Strength in graphics, growing semi-custom business, solid datacenter offerings, improved utilization of resources and solid embedded business are the major positives for the company.
The company is making all efforts to further strengthen its position in key markets with the introduction of several Accelerated Processing Units (APU) and GPUs. Its Radeon Technologies Group focuses on the graphics business and on improving its performance further in traditional graphics markets. At the same time, the company is taking initiatives in immersive computing markets like virtual and augmented reality, which is a big positive.
However, a secular decline in PC, an increasing competition from Intel and execution risks could hurt the profits of the company.
Currently, AMD has a Zacks Rank 3 (Hold).
Stocks to Consider
Some better ranked stocks in the same space include CEVA Inc. (CEVA - Free Report) , FormFactor Inc. (FORM - Free Report) and On Track Innovations Ltd. each holding a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Advanced Micro Devices: Bernstein Cuts Target Price, Rating
Advanced Micro Devices, Inc. (AMD - Free Report) rating on the stock has recently been downgraded from “market perform” to “underperform” by research and brokerage firm Bernstein. Bernstein’s price target on the stock is $3 thereby indicating a 40% decline.
Why the Downgrade
Bernstein is not very optimistic about the stock in the near term as it thinks that the company’s new Zen chip sales will take at least one more year to ramp up.
Though the company reported better-than-expected performance in the first quarter, Bernstein thinks that’s not going to be repeated in the second quarter. The firm cited channel fills behind this expectation of a dismal performance.
Moreover, Bernstein thinks that speculations about learning (AI) and virtual reality (VR) sales are further pushing up growth expectations for graphics processing unit (GPU) sales that may not eventually materialize.
AMD shares increased nearly 150% so far in 2016 and this has increased the possibility of a downfall after such a long rally.
ADV MICRO DEV Price
ADV MICRO DEV Price | ADV MICRO DEV Quote
Bottom Line
AMD is the second-largest producer of microprocessors, GPUs and chipsets in the world. Strength in graphics, growing semi-custom business, solid datacenter offerings, improved utilization of resources and solid embedded business are the major positives for the company.
The company is making all efforts to further strengthen its position in key markets with the introduction of several Accelerated Processing Units (APU) and GPUs. Its Radeon Technologies Group focuses on the graphics business and on improving its performance further in traditional graphics markets. At the same time, the company is taking initiatives in immersive computing markets like virtual and augmented reality, which is a big positive.
However, a secular decline in PC, an increasing competition from Intel and execution risks could hurt the profits of the company.
Currently, AMD has a Zacks Rank 3 (Hold).
Stocks to Consider
Some better ranked stocks in the same space include CEVA Inc. (CEVA - Free Report) , FormFactor Inc. (FORM - Free Report) and On Track Innovations Ltd. each holding a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>