Analysts at consultancy Northland Capital Markets downgraded the company’s rating. OMG from “exceptional performance” to “market performance”, with a target price of US$ 60, something around R$ 308 at the current price.
The rating downgrade has caused the company’s shares to plummet in recent days. On Friday (28), AMD shares closed at $62.01. On Tuesday, the share price ended up quoted at US$ 59.66 (~R$ 306.86).
According to analysts, Negative factors in China delayed AMD stock recovery. While ARM CPU market share gains are likely to continue, demand in China is considered “too slow to recover”.
Additionally, analysts see increased competition with Intel as the company is expected to “deliver better transistors in desktop CPUs in 2023, notebooks and servers in 2024, and will at least slow the loss of market share.”
Northland believes that Intel will have migrated to 4nm transistor technology in the second half of next year with its desktop processors, while at the same time, AMD will be using TSMC’s 5nm products.
Similarly, believes AMD will make the switch to 4nm in 2024, and the company’s problems are exacerbated by TSMC’s 3 nanometer delays, which the Taiwanese company denied. We can only wait for the company’s next steps.
