The decrease in revenue reflects lower-than-expected Client segment revenue, translating into reduced processor shipments due to weaker PC demand and supply chain disruptions. AMD CEO Dr. Lisa Su pointed to macroeconomic conditions as culprits for a weak quarter, expressing belief in the strength of the AMD portfolio. At the time of writing, the news of lower-than-expected revenue has AMD shares reeling by 5.6% in premarket trading.
AMD chart and analysis
Both the short-term and long-term trends are negative for AMD, as the shares traded from $62.83 to $85.68 over the past month, staying below all moving averages. Technical analysis shows a resistance zone from $67.86 to $67.94. Analysts rate the stock a ‘moderate buy,’ with the average price in the next 12 months reaching $105.80, 55.93% higher than the current trading price of $67.85. Notably, out of 27 Wall Street analysts, 19 have a ‘buy’ rating, 7 have a ‘hold’ rating, and one has a ‘sell’ rating. With the Q3 earnings miss and a recent estimate cut by Aaron Rakers, a Wells Fargo (NYSE: WFC) analyst, AMD seems to be in a wider downtrend. Chip shortages, supply chain weakness, and general weakness in the PC market seem like protracted problems for chip makers, suggesting more volatility in AMD could be expected in the near-term. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
