Shares of Advanced Micro Devices Inc. tumbled 5.2% in morning trade Monday, to extend its plunge toward a 5-month low, after Morgan Stanley turned bearish on the chip maker again, citing concerns over valuation and that growth will slow. The stock has now plummeted 21.3% amid a four-session losing streak since AMD reported results last week. Analyst Joseph Moore cut his rating to underweight, after being at equal weight (EW) since he upgraded the stock from underweight on Dec. 14, 2016. Moore cut his stock price target to $8, which is 29% below current levels, from $11. “We have been somewhat cynical on the stock due to valuation, but above consensus on earnings which kept us at EW,” Moore wrote in a note to clients. He said the fundamental outlook is no longer as robust as before. “We expect cryptocurrency to gradually fade from here, consoles to decline, graphics to be flattish…,” Moore wrote. The stock as now shed 1.2% year to date, while the PHLX Semiconductor Index has soared 40% and the S&P 500 has gained 15%.
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