Things at AMD (AMD) Will Get Worse Before They Get Better - Analyst
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Price: $473.25 +0.81%
Rating Summary:
53 Buy, 16 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
53 Buy, 16 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Advanced Micro Devices (NYSE: AMD) could be in trouble moving forward, even as it looks to cut overhead costs moving forward.
According to Evercore's Patrick Wang, AMD's efforts to trim the fat is also "[cutting] out much of the muscle." He thinks the restructuring will "significantly impair profitability in the coming years."
Wang said checks indicate that AMD is shifting R&D away from big core development over to low-power, lightweight cores and the new ARM Holdings (Nasdaq: ARMH) road map.
The firms maintains its Underweight rating on AMD. Wang sees the shift as a positive for ARM, Intel (Nasdaq: INTC), and International Business Machines (NYSE: IBM).
Shares of AMD are up 3.8 percent early.
According to Evercore's Patrick Wang, AMD's efforts to trim the fat is also "[cutting] out much of the muscle." He thinks the restructuring will "significantly impair profitability in the coming years."
Wang said checks indicate that AMD is shifting R&D away from big core development over to low-power, lightweight cores and the new ARM Holdings (Nasdaq: ARMH) road map.
The firms maintains its Underweight rating on AMD. Wang sees the shift as a positive for ARM, Intel (Nasdaq: INTC), and International Business Machines (NYSE: IBM).
Shares of AMD are up 3.8 percent early.
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