Shares of Advanced Micro Devices (NASDAQ:AMD) fell in early trading, which can be attributed to an analyst downgrade. Stacy Rasgon of Bernstein changed from Buy to Hold while assigning a price target of $80. For reference, the previous price target was $95.
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Rasgon cited a deterioration in the PC market and Intel’s (NASDAQ:INTC) decision to overship products in order to maintain market share. In addition, AMD might see a decline in gross margins due to significant discounts at the retail level for new PC parts. Nevertheless, consensus estimates expect an increase in gross margin, meaning that they may be too optimistic.
Overall, Wall Street analysts have a consensus price target of $83.93 on AMD stock, implying over 13% upside potential, as indicated by the graphic above.
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