Feeds

Panicked analyst ravaged by AMD chip pricing fears

'Raging Buy' flips to 'Apocalypse Near'

Build a business case: developing custom apps

AMD's recent share price slide accelerated Monday after a pair of financial analysts cut their ratings on the chip maker.

AMD dropped $2.63 or more than 7 per cent to $34.00. The significant selloff appeared to be driven by downgrades from Punk, Ziegel & Co. and ThinkEquity Partners. Both analysts cited concerns that Intel would lower its prices and put more competitive pressure on AMD as a way of countering AMD's recent market share gains.

In March, AMD's stock already looked a bit wounded after falling from a 52-week high of $42 per share sustained throughout late January and early February. Shares of AMD have been moving lower all month, although today's drop was the most significant one-day slip.

Some regrouping around AMD shares is only natural given that the stock has surged up from about $18 a share over the past year. The Wall Street geniuses were slow to wrap their heads around AMD's performance advantage over Intel, but, once they did, the "BUY, BUY, RAGING BUY" ratings started to arrive in quantity. Investors followed the advice.

Intel, however, countered AMD at least from a marketing standpoint during last week's Intel Developer Forum. Executives at the chip beasty informed customers, press and analysts that AMD's performance edge would come to an end later this year with the release of fresh desktop, server and notebook chips using Intel's new "Core" architecture that provides better overall performance and better performance per watt.

A number of analysts were impressed with Intel's pitch. And now we see a couple members of the financial community rewarding Intel for catching up to AMD on paper.

"We see increased risk in AMD revenues over the next few months as seasonally low demand combines with Intel's inventory buildup at the low-end of the desktop market," wrote Punk, Ziegel & Co.

More curious, however, was the downgrade from ThinkEquity Partners analyst Eric Ross. He pulled out the cleaver and slashed his per share price target on AMD from $50 down to $30! That's an incredible change of heart - one that would resemble a religious experience more than a new set of models.

You have to wonder how this Wall Street version of Bipolar disorder is meant to inspire confidence in clients.

Punk, Ziegel & Co. went with a more moderate price target reduction, issuing a forecast of $45 per share down from $48. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.