Oppenheimer Releases a Hold Rating on Advanced Micro Devices

By Carrie Williams

In a report released yesterday, Rick Schafer from Oppenheimer reiterated a Hold rating on Advanced Micro Devices (NASDAQ: AMD). The company’s shares closed yesterday at $10.37.

Schafer wrote:

“AMD reported 4Q sales/loss per share of $1.1B/($0.01), mixed vs. consensus $1.07B/ $0.01. Polaris GPU and client processor sales were relatively solid, partially offsetting seasonal weakness from console OEMs. Mgmt guided 1Q revenues down 11% Q/ Q, at mid-point, implying revenues of $987M, above the Street’s consensus estimate of $964M. Pro-forma GM expanded 130bps in 4Q due to mix towards Computing/ Graphics, and is expected up another 100bps in 1Q. Mgmt reiterated Ryzen’s 1Q17 launch followed by Vega and Naples in the 2Q. It is still too early to tell whether AMD’s new product line-up can take high-end CPU/GPU share from INTC/NVDA.”

According to TipRanks.com, Schafer is a top 25 analyst with an average return of 16.8% and a 73.8% success rate. Schafer covers the Technology sector, focusing on stocks such as Adesto Technologies Corp, Applied Micro Circ, and NXP Semiconductors.

Currently, the analyst consensus on Advanced Micro Devices is Moderate Buy and the average price target is $11.64, representing a 12.2% upside.

In a report issued on January 18, Barclays also maintained a Hold rating on the stock with a $9 price target.

Based on Advanced Micro Devices’ latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $1.31 billion and GAAP net loss of $406 million. In comparison, last year the company earned revenue of $958 million and had a GAAP net loss of $102 million.

Based on the recent corporate insider activity of 49 insiders, corporate insider sentiment is negative on the stock. Most recently, in November 2016, Harry Wolin, the SVP & GC of AMD sold 18,000 shares for a total of $159,840.

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Advanced Micro Devices, Inc. is a global semiconductor company that develops computer processors and related technologies for business and consumer markets. It design and integrate technology for intelligent devices, including personal computers, game consoles and cloud servers. The company operates through the following segments: Computing and Graphics, and Enterprise, Embedded and Semi-Custom. The Computing and Graphics segment includes desktop, notebook processors, chipsets, discrete GPUs and professional graphics. The Enterprise, Embedded and Semi-Custom segment includes server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties. Advanced Micro Devices was founded by W. J. Sanders III and David John Carey on May 1, 1969 and is headquartered in Sunnyvale, CA.