UPDATE: Oppenheimer Downgrades Advanced Micro Devices on Lack of Valuation Support

In a report published Monday, Oppenheimer analyst Rick Schafer downgraded the rating on

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.