Advanced Micro Devices (NASDAQ:AMD) stock is slipping on Thursday following a new price prediction from Piper Sandler analyst Harsh Kumar.
The Piper Sandler analyst hit AMD stock with a new price prediction of $130 per share. That’s a drop from the previous price target of $140 per share. This new price target is below the $140.04 held by a consensus of analysts.
With the new price prediction for AMD stock comes a lowered rating. Kumar dropped the company from an overweight rating to a new neutral rating. For the record, the consensus rating for AMD stock is a buy. That comes from 19 buy ratings, 10 hold ratings, and one sell rating.
So why is the Piper Sandler analyst taking a more bearish stance on AMD stock? He’s not expecting the company to keep up its current levels of growth into the second half of the year with weakening orders.
That includes expectations for automotive orders to cool in the latter half of 2022. In addition to that, Kumar is also expecting earnings from the PC market to slow throughout 2022. Other factors, including the Xilinx deal, as well as market dynamics around tech stocks, are also behind this new price prediction and rating for AMD stock.
AMD is a tech company based out of Santa Clara, Calif. Its focus is developing and selling computer processors, such as its Ryzen line, as well as GPUs, which include its Radeon graphics cards.
AMD stock is down slightly as of Thursday morning.
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