Market Overview

Much Required To Be Done To Expand AMD’s Gross Margin

Share:

Analysts at Auriga maintain their "sell" rating on Advanced Micro Devices (NYSE: AMD). The target price for AMD is set to $6.

According to Auriga, “AMD is set to deconsolidate GlobalFoundries (GF) starting this quarter – a big step, but our work suggests that investors are overly optimistic on the beneficial effects – unless GF is willing to bleed money to ensure that AMD gets high gross margin, it’s tough to see how the product company can approach $1 EPS near-term as many bulls argue.”

Auriga believes that extrapolating Advanced Micro Devices’ performance from the strength in PC trends and solid results by Intel (NASDAQ: INTC) may risk “misinterpreting AMD’s competitive positioning.” “AMD has gained share in graphics from NVidia (NVDA, Hold) – good for sales but below corporate average gross margin – but its CPU roadmap looks weak, particularly in high-ASP/high-margin servers where checks suggest that INTC’s Nehalem product continues to gain market share,” the analysts say.

More Analyst Ratings here.

 

Related Articles (AMD + GF)

View Comments and Join the Discussion!

Posted-In: AurigaAnalyst Color Analyst Ratings

Latest Ratings

StockFirmActionPT
AZOUBSMaintains1,250.0
AUBSMaintains87.0
NAVBHC Wainwright & Co.Maintains6.0
EDCFRAMaintains74.0
TNDMB of A SecuritiesMaintains95.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com