Advanced Micro Devices (NASDAQ:AMD), Inc. (NASDAQ: AMD) shares are trading lower by 3.77% to $59.67 during Monday's session after Northland Capital markets downgraded the stock from Outperform to Market Perform. Morgan Stanley (NYSE:MS) also lowered its price target on the stock form $86 to $77.
Shares of semiconductor companies at large are also trading lower, weakness may be in sympathy with ON Semiconductor, which fell after reporting third-quarter results.
What Happened?
In a note from Morgan Stanley, following severe weakness in the third-quarter for the PC business, the analyst firm keeps estimates for AMD's growth in the server business in the high single digits. Morgan Stanley does however see the potential for a snapback in the sector come 2023.
Morgan Stanley also says the analyst firm sees, despite having thought AMD would be less impacted by cloud inventory issues across the sector, low sequential growth in the server business for fourth-quarter 2022 and first-quarter 2023, with growth resuming thereafter.
AMD has a 52-week high of $164.46 and a 52-week low of $54.57.
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