- Oppenheimer calls Advanced Micro Devices (AMD -2.3%) and Cirrus (CRUS -1.6%) its "top structural/secular shorts" in downgrading both to Underperform, part of a broader negative semiconductor outlook.
- AMD's PC/graphics sales likely will continue falling faster than PC units as Intel leverages its vast manufacturing/cost advantage to aggressively and profitably capture low-end share, the firm says; that, combined with low margins from its chips for Sony‘s PlayStation 4 and Microsoft‘s Xbox One, promise to bring down overall corporate gross profit.
- On CRUS, Oppenheimer sees lower average selling prices and gross margins; Broadcom ([[BRCM] +2.4%) is cut to Perform from Outperform, as the firm does not believe the LTE business is going to materialize after the recent analyst day.
Oppenheimer raises red flags on AMD, Cirrus, semiconductor sector
Dec 16 2013, 12:46 ET