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Doug Freedman, an analyst with American Technology Research, this morning cut his price target on Advanced Micro Devices (NASDAQ:AMD) to $27 from $30, asserting that the company “is experiencing a challenging [fourth quarter] from both a demand and product mix stand point.”

Freedman says Intel’s (NASDAQ:INTC) new products “are having an impact,” reversing some recent market share losses to AMD. He says that in order to move inventory, AMD has decided to cut prices to channel partners, with prices reduced about 8% earlier this week. He says AMD is also offering “favorable pricing to server customers that are in competitive situations.”

Freedman also reports that AMD “has had a mismatch of product at Dell, with significant inventory being made available to channel partners.” He notes, as well, that “a few notebook wins” that AMD thought it had “now seem to be in danger” and may be lost to Intel. He reports that “share gains in the Japanese notebook market are proving very challenging.” Freedman also says AMD is in danger of losing several larger server projects to Intel, as well.

Freedman still has a Buy rating on the stock, though; he says “over the course of the next three months, we should begin to see a new product cycle combining with the earnings leverage of the new AMD.”

AMD today is down 46 cents at $21.39.

Source: ATR: AMD's Facing A Challenging Q4