To Buy Or Sell AMD Following Downgrade? It Depends On Your Approach

Zinger Key Points
  • The Barclays analyst sees corrections across several end markets dampening AMD's growth. 
  • It isn't clear how competitive Intel Corporation and Arm Holdings will be in the years ahead.
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Advanced Micro Devices Inc AMD was featured as the call of the day Thursday on CNBC's "Fast Money Halftime Report."

What Happened: Barclays analyst Blayne Curtis downgraded AMD from an Overweight rating to an Equal-Weight rating and lowered the price target to $115 from $148.

The Barclays analyst sees corrections across several end markets dampening AMD's growth. 

Brown's Take: "I think it's a reasonable note and sentiment that the analyst is expressing," said Ritholtz Wealth Management's Josh Brown.

It all depends on what an individual's intentions are in the market, Brown said. 

"On the one hand, you can say Lisa Su is doing a great job and AMD is a great company and I don't think anybody could really argue that," he said. "But you also sometimes would have to say all of that might be true and 2022 just might not be a great year for the stock."

Related Link: AMD Plunges, But Here's Why The Pullback Could Offer Opportunity

Brown's point is that you have to know whether you are an investor or a trader. Traders don't have time to stick around and wait it out, but for investors, the right move might be to just hold, he explained.

Brown noted the analyst is concerned that things may be as good as it gets for now. Moreover, it isn't clear how competitive Intel Corporation INTC and Arm Holdings will be in the years ahead.

"So I think you have to know what you are," Brown stressed.

AMD Price Action per Benzinga Pro: AMD has traded between $72.50 and $164.46 over a 52-week period.

The stock was down 8.29% at $109.34 at market close Thursday.

Photo: Courtesy of AMD

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Posted In: Long IdeasDowngradesPrice TargetAnalyst RatingsMediaTrading IdeasBlayne CurtischipsCNBCJosh BrownLisa Susemiconductor

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