UPDATE: FBR Capital Markets Downgrades Advanced Micro Devices to Market Perform on Cash, Margin Concerns

FBR Capital Markets reduced its rating on Advanced Micro Devices

from Outperform to Market Perform and reduced its price target from $5 to $3. FBR Capital Markets noted, "We are throwing in the towel on AMD and are downgrading shares to Market Perform. While we know PC sales are suffering from weak macro demand (including China and Europe), a complete absence of any back-to-school goodness, tablet/smartphone cannibalization, and a production/sales "air pocket" before the Win8 launch, we now have less confidence in go-forward cash burn given rapidly declining ASPs and management's new refusal to provide gross margin guidance. Thus, we worry about the magnitude of intended pricing cuts and gross margin impacts as AMD's cash bleed could intensify." Advanced Micro Devices closed at $2.62 on Thursday.