AMD Stock: Why It Tumbled and Where It’s Headed
3/4 00:10
Humpty Dumpty sat on a wall. Humpty Dumpty had a great fall -- and crashing right down beside him was semiconductor giant Advanced Micro Devices (AMD), which lost 8% of its market capitalization -- about $16 billion -- after investment bank Barclays downgraded its stock to Equalweight (i.e. Hold) on Thursday.
Despite admitting that AMD will, in all likelihood, exceed expectations for 31% sales growth this year, and gain market share "in both the client and server markets" besides, Barclays' 5-star analyst Blayne Curtis cut his rating on AMD -- and cut his price target by 22%, to $115 a share. (To watch Curtis' track record, click here)
As Barclays analyst Blayne Curtis explained, "we see cyclical risk across several end markets (PC, Gaming, and broad-based/XLNX)" for AMD somewhere in the "2024/2025" timeframe. Although that's still a few years away, and although in the nearer term, Curtis admitted that AMD is still growing strongly, the analyst nevertheless said he wou...