As IT stocks plunged in response to the Federal Reserve’s hawkish outlook and sluggish consumer spending, Advanced Micro Devices (NASDAQ:AMD), the semiconductor industry’s market leader, dropped more than 5% in early Thursday trade.
According to Morgan Stanley analyst Joseph Moore, AMD (NASDAQ:AMD) has surpassed Lam Research (NASDAQ:LRCX) as the company’s top semiconductor stock for 2023. Moore noted that Dr. Lisa Su’s AMD hasn’t really participated in the recent boom in semiconductor companies.
Moore, who ranks both AMD (NASDAQ:AMD) and Lam Research (NASDAQ:LRCX) as overweight, said that the industry’s outlook for next year is still “difficult,” even though both companies’ stocks have gone up recently, with Lam Research’s going up by 50%. As a result, the company is being cautious.
Even though AMD’s server roadmap made it clear that the company would be the leader in technology for the rest of the year, the company’s stock is still doing worse than other large caps. Lam Research (LRCX) dropped more than 4%, while rivals KLA Corp. (KLAC) and Applied Materials (AMAT) dropped 3.8% and 4.1%, respectively.
AMD Stock Against Semiconductor Rivals
Along with AMD rivals Intel (INTC) and Nvidia (NASDAQ:NVDA), which saw declines of 3.1% and 4.4%, respectively, other semiconductor stocks had steep declines on Thursday.
Qualcomm (QCOM), Skyworks Solutions (SWKS), and Qorvo (QRVO), all of which make chips for smartphones, fell by 3.7%, 2.5%, and 2.5%, respectively, after the U.S. government said that retail spending fell by 0.6% from October to November.
Texas Instruments (TXN), Analog Devices (ADI), Micron Technology (MU), and Broadcom (AVGO), all of which saw declines of 2% or more, also saw significant swings to the south.
AMD says that the ongoing patent disputes between Analog Devices (ADI) and Advanced Micro Devices (AMD) were completely resolved last month on terms that were good for both companies
AMD Stock Is A Good Buy Because Its Chips Have “Never Been Stronger” Analyst Claims
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