Tags: Goldman | AMD | Stock | Chip

Goldman: AMD Stock to Drop 20 Percent Amid Tough Chip Competition

Goldman: AMD Stock to Drop 20 Percent Amid Tough Chip Competition
Andrii Zhezhera | Dreamstime.com

By    |   Thursday, 06 April 2017 12:23 PM

Goldman Sachs has issued a “sell” rating on Advanced Micro Devices stock because it see the chipmaker being bruised by tough competition from Nvidia and Intel.

AMD shares are up 25 percent this year and 406 percent in the past 12 months through Wednesday on anticipation of its new gaming graphics and processor chips, CNBC.com explained.

While the company's "execution (i.e. new product launches, cost management and BS [balance sheet] deleveraging) has improved under CEO Lisa Su, we believe current risk-return is unfavorable," analyst Toshiya Hari wrote in a note to clients Thursday entitled "Priced for perfection."

"If AMD were to gain meaningful traction with its new products in 2017, we believe Intel and Nvidia would be likely to fight back in late-2017 and/or 2018 in the form of pricing concessions," he added.

To be sure, Newsmax Finance Insider Ed Yardeni cautioned savvy investors to not underestimate Silicon Valley itself, as it may have more sway on your everyday life than politicians.

"While we and everyone else have been focusing on Washington, life goes on elsewhere. Without a doubt, the regime change in DC is dramatic. It is bound to significantly affect and alter the future course of our political, economic, and financial systems—well, at least for the next four years. However, the near and distant future may very well be even more significantly affected by what is happening in Silicon Valley," he wrote for Newsmax Finance.

"Certainly, recent developments in autonomous cars, robotics, and artificial intelligence have captured the imagination of tech investors. One way they’ve played the future is by investing in the manufacturers producing the semiconductor chips that will run all of these new technologies," he wrote.

© 2019 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
StreetTalk
Goldman Sachs has issued a "sell" rating on Advanced Micro Devices stock because it see the chipmaker being bruised by tough competition from Nvidia and Intel.
Goldman, AMD, Stock, Chip
280
2017-23-06
Thursday, 06 April 2017 12:23 PM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved