- Barclays analyst Blayne Curtis downgraded Advanced Micro Devices Inc (NASDAQ:AMD) to Equal Weight from Overweight with a price target of $115, down from $148 (3.54% downside).
- The company's growth story needs a pause with cyclical risks looming in 2023, admitted Curtis.
- AMD remains positioned to gain market share in both the client and server markets this year, but cyclical risk across several end markets will come in 2023.
- He believes all three segments are running at elevated levels, which pauses the risk to AMD's growth trajectory.
- AMD's Q4 results exceeded expectations on every metric, with solid data center revenues and server and gaming processor sales.
- AMD issued upbeat forecasts for the March quarter and FY22 amid the ramp of existing products and the launch of next-gen products planned for the year.
- Investors continue to watch U.S. economic data, Russia-Ukraine developments, and the Fed rate hike outlook.
- A worse-than-expected U.S. GDP data and a rebound in oil prices have also weighed on market sentiment.
- Price Action: AMD shares traded lower by 1.97% at $116.67 in the premarket on the last check Thursday.
