Zacks Investment Research downgraded shares of Advanced Micro Devices (AMD) from OUTPERFORM to NEUTRAL on September 20, 2013, with a target price of $4.25.
AMD is the second largest producer of microprocessors, GPUs and chipsets in the world. Its second quarter earnings were better than the Zacks Consensus Estimate, driven by solid execution and cost control management. The company also provided an upbeat third quarter guidance, indicating strong growth ahead. The company's new products, strength in graphics, increased game console wins, advancements in 32nm manufacturing and position in China remain positives. But at the same time, Intel remains a strong competitor with superior strategy, technological prowess and the clout that may be expected of the market leader. While AMD may be able to carve out its own niche, its cash burn rate and significant leverage indicate that it is fast running out of time. Competition from ARM is also expected to increase. We are therefore downgrading our recommendation on AMD shares from Outperform to Neutral.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
To get a free copy of the research report on Advanced Micro Devices (AMD),
click here.
For more information about research offerings from Zacks Investment Research, visit
Zacks.com .
Be the first to comment