Please select the second broker

Author: Alan LittleDate: 2022-04-01

AMD (AMD) shares down 7.2% after Barclays rating downgrade

Chipmaker AMD (AMD) shares slumped 7.2% in trading on Thursday after Barclays cut its rating and price target on growing competition in key markets and “cyclical” risks.

Advanced Micro Devices (AMD) shares tumbled 7.2% on Thursday after Barclays said that it wanted to “move to the side-lines” amid growing competition in the gaming and PC sector.

Analysts at the bank downgraded AMD from overweight to equal weight and shaved its price target to $115 on what it perceives to be “cyclical” risks in several markets that are important to the chipmaker.

Barclays is also waiting to see how Intel (INTC) and ARM Holdings, among others, could potentially wrestle away market share from AMD in the coming years.

Analyst Blayne Curtis is unsure what AMD’s “growth trajectory” will look like in 2024 as the landscape changes and a potential correction takes place to undermine its current strengths.

Barclays said that a move to the side-lines, which was made clear in its downgrade, will give it the chance to evaluate the corrections until it has “better clarity”.

The cautious update is perhaps surprising considering that AMD said in February that its revenue this year is on track to soar 30% to more than $21.5bn.

The Santa Clara-based company also beat Q4 earnings estimates by 16 cents at $0.92 per share, while revenues rose to $4.83bn on strong sales of cloud and enterprise server chips.

Demand for AMD’s data centre chips is set to get another boost with its $35bn acquisition of Xilinx (XLNX), which has been given the green light by regulators to close.

Investors were spooked by Barclays’ note on Thursday though as its shares retreated 7.2% to $110.60 during trading in the US.

AMD is also down for the year, with the latest slump sending it 26.4% into the red since 1st January.

Scam Brokers, Broker Complaints

Are you aware of a scam broker or want to make a broker complaint?

We want our site users to find good brokers to trade through and to be warned off bad brokers. We encourage you to use our complaints tool to let us know about your experiences.

We have categorised the common complaints to make it easier for you and we have provided some guidance on what you may want to try before submitting a complaint, if our suggestions do not provide you with a resolution then by submitting a complaint, our team will attempt to take up your case with the relevant Broker and if needed, submit a formal report to the regulators.

We use the information you give us to decide if we want to continue to promote a broker on our site.

Your scam broker complaint not only helps you, it helps others and it helps us determine if we continue to support the broker.