7 Reasons Why Barclays Was Wrong to Downgrade AMD (AMD) Stock - Rosenblatt's Mosesmann

Rosenblatt analyst Hans Mosesmann urged investors to buy the dip in shares of Advances Micro Devices (NASDAQ: AMD) after a near 15% pullback in the last three days.

AMD stock price fell sharply yesterday after Barclays analyst Blayne Curtis downgraded to Equal Weight from Overweight with a $115.00 per share price target, down from $148.00.

“AMD still looks positioned to gain share this year in both the client and server markets, and while we do see upside to the 31% growth target this year, where we have an issue is for 2023, as we see cyclical risk across several end markets (PC, Gaming, and broad-based/XLNX),” Curtis said in a client note.

However, Mosesmann dismissed these concerns as:

1. AMD is not in any jeopardy of missing the +30% y/y sales growth target for 2022, according to Mosesmann’s checks;
2. Aggressive PC CPU pricing from either AMD or Intel still to be seen;
3. AMD to continue to gain PC CPU market share;
4. AMD to gain significant data center market share, the “thrust” of Mosesmann’s buy thesis;
5. Intel has limited ability to defend server share at any price;
6. Intel not in a position to cut prices given margin pressures;
7. AMD fundamentals are better today than they were entering the year.

“We are buyers,” Mosesmann concluded in an emphatic fashion.

AMD stock price is down 2.1% today.

By Senad Karaahmetovic

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