This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Advanced Micro Devices (AMD) Suffers on Weak PC Demand

NEW YORK (TheStreet) -- Bank of America downgraded semiconductor manufacturer Advanced Micro Devices (AMD - Get Report) to "neutral" on fears its exposure to the low-end consumer PC segment makes it susceptible to market share losses to Intel (INTC) and existing weakness in the PC market. UBS also maintained its "neutral" rating but revised its price target to $4.10 from $4.50 on weakness in its core PC-related divisions.

Credit Suisse remained bearish on the stock with a price target of $3 and an "underperform" rating. "While we anticipate another profitable quarter in December, sustainability and magnitude of profits in CY14 are still a question mark," Credit Suisse wrote in its report.

AMD reported third-quarter net income of $48 million, or 6 cents a share, on revenue of $1.46 billion, 15% higher than a year earlier. Sales in its computer processing units division, however, dropped 15% compared to a year earlier, due to decreased PC demand. AMD is forecasting fourth-quarter revenue to gain 5%.

AMD shares plummeted 13.7% to $3.53 by the end of trading.

Must Read: Verizon (VZ) Due For Strong 2013 Finish: UBS

TheStreet Ratings team rates Advanced Micro Devices as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate Advanced Micro Devices (AMD) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and feeble growth in its earnings per share."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AMD $2.34 -1.10%
AAPL $118.14 -0.14%
FB $106.19 1.90%
GOOG $763.33 2.80%
TSLA $234.98 2.00%


Chart of I:DJI
DOW 17,817.43 +97.51 0.55%
S&P 500 2,092.92 +12.51 0.60%
NASDAQ 5,133.4340 +24.7680 0.48%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs