NEW YORK (TheStreet) -- Shares of Advanced Micro Devices (AMD) - Get Report were falling 3.9% to $2.73 Thursday after rival PC processor manufacturer Intel (INTC) - Get Report lowered its revenue forecast for the first quarter of 2015.

Intel said it now expects revenue of $12.8 billion, plus or minus $300 million (a range of $12.5 billion to $13.1 billion), for the first quarter. The chipmaker previously expected first quarter revenue of $13.7 billion, plus or minus $500 million (a range of $13.2 billion to $14.2 billion).

Analysts surveyed by Thomson Reuters expect Intel to report revenue of $13.7 billion for the first quarter.

Intel said the lower revenue forecast is due to "weaker than expected demand for business desktop PCs and lowers than expected inventory levels across the PC supply chain." The company believes the lower demand and inventory patterns are a result of "lower than expected Windows XP refresh" in small and medium businesses and "challenging macroeconomic and currency conditions, particularly in Europe."

Shares of Intel were falling 4.3% to $30.93.

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, poor profit margins, generally high debt management risk and generally disappointing historical performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 509.0% when compared to the same quarter one year ago, falling from $89.00 million to -$364.00 million.
• Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, ADVANCED MICRO DEVICES's return on equity significantly trails that of both the industry average and the S&P 500.
• The gross profit margin for ADVANCED MICRO DEVICES is currently lower than what is desirable, coming in at 32.61%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -29.37% is significantly below that of the industry average.
• The debt-to-equity ratio is very high at 11.83 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, AMD's quick ratio is somewhat strong at 1.29, demonstrating the ability to handle short-term liquidity needs.
• The share price of ADVANCED MICRO DEVICES has not done very well: it is down 19.68% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
• You can view the full analysis from the report here: AMD Ratings Report