This post was originally published on this site
Advanced Micro Devices Inc (NASDAQ:AMD) was downgraded to Hold from Buy with a price target of $76 per share at Craig-Hallum on Wednesday.
Analysts said AMD’s growth is slowing following multiple years of strong execution and market share gains.
“While AMD has executed very well for multiple years, we believe the company may now have become a victim of its own success,” said analysts. However, they believe AMD is positioned to continue executing well, gain share, and grow, but that it will likely be at a “more marginalized pace.”
“In addition to the broader macro headwinds the company is facing in the near term across PCs and cloud customer digestions we believe the company may be hard pressed to drive topline growth in 2023, following multiple years of very strong double-digit topline growth,” analysts added.
“Therefore, with shares already trading at 20x our lowered 2024 EPS estimate we are stepping to the sidelines and downgrading shares to a Hold.”
