Why Advanced Micro Devices (AMD) Stock Is Down Today

NEW YORK (TheStreet) -- Advanced Micro Devices (AMD) was falling -0.5% to $3.95 Tuesday after announcing the pricing of $500 million of senior notes due 2024.

AMD expects net proceeds from the offering and sale of the 7% senior notes of about $490 million after deducting the initial purchasers' discounts and estimated offering expenses. The chipmaker will use the net proceeds to fund the purchase of all 8.125% senior notes due 2017 that are early tendered. Any remaining proceeds will be used to redeem any remaining 8.125% senior notes.

Must read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings team rates ADVANCED MICRO DEVICES as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate ADVANCED MICRO DEVICES (AMD) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, relatively poor performance when compared with the S&P 500 during the past year and generally higher debt management risk."

If you liked this article you might like

7 Essential Rules for Investing in Tech Stocks

Wall Street Deflates in Pullback After Fed Excitement, No Records for Dow

Your Guide to Making a Lot of Money on the Driverless Car Boom