UPDATE: Oppenheimer Downgrades Advanced Micro Devices on Lack of Valuation Support
In a report published Monday, Oppenheimer analyst Rick Schafer downgraded the rating on Advanced Micro Devices (NYSE: AMD) from Perform to Underperform.
In the report, Oppenheimer noted, “We are downgrading shares of AMD from Perform to Underperform. Despite notable near-term strength in gaming console sales and signs of stabilization in the PC market, we believe structural challenges are mounting. AMD PC/graphics sales are likely to continue falling faster than PC units as INTC leverages its vast manufacturing/cost advantage to aggressively and profitably capture low-end share. Meanwhile, NVDA's competitive graphics position remains as dominant as ever. GM are likely to structurally decline going forward as management chases low-margin gaming revenue while being forced to compete aggressively in the core PC segment. We are tweaking our sales estimates higher, but lowering our bottom-line assumptions. We see little valuation support and would be sellers here.”
Advanced Micro Devices closed on Friday at $3.69.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.