Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Northland Upgrades AMD Stock to Outperform as Macro Headwinds are Now Priced In

Published 30/06/2022, 13:14
Updated 30/06/2022, 13:14
© REUTERS

© REUTERS

Northland Capital Markets analyst Gus Richard upgraded shares of AMD (AMD) to Outperform from Market Perform with a price target cut to $95.00 per share.

The analyst believes macro headwinds are now priced in, both in his estimates and the share price, which is down 53% from the peak in November.

Not just for AMD, Richard argues that the estimates for semiconductor companies are too high in general.

“We scrubbed our AMD numbers and lower our CY23 estimates to comprehend a global economic slowdown that will likely impact PC CPUs, GPUs, game consoles, and XLNX. AMD in servers CPUs is at the top of the stack next year we believe AMD will see little impact on this business in CY23. We estimate that AMD's PC CPU revenue will decline 6% next year, and GPU revenue will decline 7%,” Richard told clients in a note.

Given today’s cut to estimates, Richard argues these are now a “low bar for the company.”

AMD shares are still down 1.5% today.

By Senad Karaahmetovic

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.