MKM Partners analyst Ruben Roy has recently met with roughly 30 companies that participate in the Asian technology supply chain. Unfortunately, the analyst’s meeting takeaways left him less positive in the near-term on Advanced Micro Devices, Inc. (NASDAQ:AMD). The analyst rates AMD a Neutral, while holding a $13 price target, which implies a downside potential of 7% from where the stock is currently trading.
Roy wrote, “While investors were enthusiastic about AMD’s recent launch of its EPYC server family and we expect similar enthusiasm following INTC’s July 11th Purley launch, our discussions on server market trends, in general, were lackluster. […] With respect to AMD and EPYC, we found ODM partner feedback less positive. While end customers are clearly enthusiastic about having a potential second source to INTC, our conversations indicate that early end customer engagements with EPYC are largely low volume trials. Initial feedback on AMD’s Infinity Fabric interconnect indicates some latency concerns. We would note that our discussions are based on a small set of ODM partners but we do think that the feedback is worth noting given rising expectations for AMD’s new products.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ruben Roy has a yearly average return of 10.7% and a 63% success rate. Roy is ranked #598 out of 4592 analysts.
In the past 3 months, 10 analysts rated AMD stock a Hold, while 9 recommended to Buy and 3 recommended to Sell the stock. The average price target currently stands at $13.11, which implies a 7% downside potential from current levels.