Advanced Micro Devices (NASDAQ:AMD)
When Northland Capital Markets analyst Gus Richard downgraded the chipmaker’s stock a day before it announced its third-quarter financial results, AMD stock dropped by more than 3%.
Richard revised his outlook on Advanced Micro Devices (NASDAQ:AMD) stock, changing it from outperform to market perform and setting his price objective for the stock at $60 per share before the market opened. Richard said, “The tide is turning” for Advanced Micro Devices (NASDAQ:AMD). He mentioned reasons such as a gradual recovery in demand from China and increased competition as among the challenges AMD would face in the next years.
Richard predicted that the market share for ARM’s central processing units (CPUs) would continue to expand, “, particularly in China.” He also predicted that Intel would likely have better access to transistors in desktop CPUs the following year and that sales of laptops and servers would improve in 2024.
In China, what Richard referred to as “indigenous demand” has shrunk significantly, and the demand for servers has slowed to the point that there are several problems confronting AMD in the Chinese market.
“Is it due to a failing economy, an inventory correction, Covid lockdowns, or market share gains by ARM?” “Is it due to a weakening economy, an inventory correction, or Covid lockdowns?” A study notes that Richard wrote included a discussion of his demotion.
In addition, Richard stated that the chip market is simply dealing with the aftereffects of the PC and server demand being “pulled forward” during the Covid-19 pandemic and that enterprises are now using the equipment they purchased and simply do not need to upgrade their operations. This is one of the reasons why the chip market is experiencing difficulties.
AMD Stock Analysis
Wall Street analysts and Seeking Alpha contributors are now recommending that investors purchase shares of AMD. The quantitative methodology at Seeking Alpha, which has consistently outperformed the stock market’s performance, has assigned a hold recommendation to the Advanced Micro Devices (NASDAQ:AMD) stock.
Featured Image- Pixabay @ Firmin-hu
Author Shariq Khan 
