• Piper Sandler analyst Harsh Kumar downgraded Advanced Micro Devices Inc (NASDAQ: AMD) to Neutral from Overweight with a price target of $130, down from $140.

  • The analyst is cautious on the broader automotive sector, saying the pace of orders and strong pricing "may come into question" as supply normalizes in the second half of 2022.

  • The price target implies that the stock is fair-priced.

  • Related Content: Here's Why Cowen Sees Notable Upside In AMD

  • Once supply and demand hit parity, it will likely result in a slower pace of orders than the pace seen over the last few years, Kumar notes.

  • His downgrade of AMD reflects concerns about a slowdown in the PC market during 2022, the "earnings and growth headwind" from closing the Xilinx Inc (NASDAQ: XLNX) deal, and the "broader market dynamics around high-multiple, high-growth technology stocks."

  • As such, he feels there is more downside risk than upside risk at this point.

  • Price Action: AMD shares traded lower by 1.52% at $126.32 in the premarket session on the last check Thursday.

Latest Ratings for AMD

Jan 2022

Piper Sandler

Downgrades

Overweight

Neutral

Jan 2022

Barclays

Maintains

Overweight

Jan 2022

Keybanc

Upgrades

Sector Weight

Overweight

View More Analyst Ratings for AMD
View the Latest Analyst Ratings

See more from Benzinga

  • Here's Why Cowen Sees Notable Upside In AMD

  • Here's Why BofA Remains Bullish On Nvidia, AMD

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