Will Advanced Micro Devices (AMD) Stock Be Hurt by Bernstein Downgrade?

Advanced Micro Devices (AMD) stock rating was reduced to ‘underperform’ from ‘market perform’ at Bernstein on Friday.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of Advanced Micro Devices (AMD) - Get Report are increasing 1.79% to $5.11 early Friday afternoon although Bernstein cut its rating on the stock to "underperform" from "market perform," the Fly reports.

Bernstein has a $3 price target on shares of the Sunnyvale, CA-based semiconductor company.

The stock may disappoint investors moving forward, according to the firm.

Advanced Micro's PC chips performed better than expected in the first quarter, but the outperformance was likely because of channel fill, Bernstein said. Sales of its new Zen chip for servers will likely not increase much for another year, the firm added.

Additionally, Bernstein believes the company's 2016 fiscal second quarter results could come in below analysts' expectations, the Fly noted.

Wall Street is expecting Advanced Micro to post a loss of 8 cents per share on revenue of $951.89 million for the period.

The company is scheduled to report second quarter results on July 21.

Separately, many U.S. stocks are getting a boost today from strong U.S. jobs data.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on the stock.

This is driven by multiple weaknesses, which 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 covered by the team.

The area that have been the company's primary weakness has been its declining revenues.

You can view the full analysis from the report here: AMD

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