Advanced Micro Devices (NASDAQ:AMD) stock is slipping on Thursday as investors react to a new rating from Barclays analyst Blayne Curtis.
The Barclays analyst hit AMD stock with a downgrade that dropped it from an “overweight” rating to an “equal weight” rating. For the record, the consensus rating for AMD is “buy.” That comes from 17 “buy” and 11 “hold” ratings.
In addition to that, Curtis also dropped his price target for AMD stock to $115 from $148. To put that in perspective, the consensus price prediction for AMD stock is $149.81 per share. Also, AMD closed out trading yesterday at $119.22.
So why is this analyst pulling back from a bull stance on AMD stock? Let’s hear what he has to say below in a quote obtained by TheStreet.
“We don’t have a smoking gun pointing to a correction underway in any of these markets, but it’s very clear to us that all 3 segments (gaming, PC and ‘broad-based/XLNX’) are running at elevated levels. The core issue here is what will be AMD’s growth trajectory coming out of this potential correction and the answer to this will be just how competitive Intel and ARM will be in 2024/25.”
Lackluster trading volume is following AMD stock today with that new rating and price target. This has around 60 million shares changing hands as of this writing. That’s still well below the company’s daily average trading volume of about 102 million shares.
AMD stock is down 6.5% as of Thursday morning and is down 25.8% since the start of the year.
Investors seeking more stock market news for today will want to stick around!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.