Black Friday Sale! Save huge on InvestingProGet up to 60% off

Advanced Micro Devices a victim of its own success - Craig-Hallum

Published 01/02/2023, 16:32
© Reuters.
AMD
-

By Sam Boughedda

Advanced Micro Devices Inc (NASDAQ:AMD) was downgraded to Hold from Buy with a price target of $76 per share at Craig-Hallum on Wednesday.

Analysts said AMD's growth is slowing following multiple years of strong execution and market share gains.

"While AMD has executed very well for multiple years, we believe the company may now have become a victim of its own success," said analysts. However, they believe AMD is positioned to continue executing well, gain share, and grow, but that it will likely be at a "more marginalized pace."

"In addition to the broader macro headwinds the company is facing in the near term across PCs and cloud customer digestions we believe the company may be hard pressed to drive topline growth in 2023, following multiple years of very strong double-digit topline growth," analysts added.

"Therefore, with shares already trading at 20x our lowered 2024 EPS estimate we are stepping to the sidelines and downgrading shares to a Hold."

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.