J.P. Morgan Reiterates Neutral Rating, $7 PT On AMD

In a note out today, J.P. Morgan reiterated a neutral rating and $7 price target on chip maker Advanced Micro Devices (NYSE: AMD), saying the negative news from Intel (Nasdaq: INTC) is impacting AMD.

“We expect weakness at AMD as well, as the companies share similar end market, supply chain, and customer exposure. We believe the HDD shortages exacerbate AMD's 4Q11 guidance of revenue to increase 1%-5% QoQ ($1.71-$1.77 billion). As a result, our new 4Q11 revenue estimate of $1.55 billion (down 8% QoQ) is well below normal seasonality of a 7% QoQ increase,” J.P. Morgan said in the note.