UPDATE: Goldman Sachs Downgrades Advanced Micro Devices to Sell on Disappointing Results in the PC Sector

In a report published Wednesday, Goldman Sachs analyst James Covello downgraded

from Neutral to Sell with a new price target of $2.50. In the report, Covello stated, "The gaming opportunity for AMD is real and indeed we believe published consensus estimates likely need to increase to incorporate gaming. However, even incorporating the expected gaming revenue and earnings, the stock is trading at 22X our new 2014 CY EPS estimate as the gaming opportunity only partially offsets the continued secular challenges in the company's core PC business (we estimate that the PC business will generate 45% of the company's 2013 revenue). We therefore believe this recent move in the stock is just the latest in a long history of unsustainable rallies, and we are downgrading the stock to Sell. We believe the current multiple is unjustified for any company with such significant exposure to the secularly declining PC market." AMD is currently trading at $3.84, down 14.86 since market open.