Craig Hallum analyst Christian Schwab downgraded Advanced Micro Devices Inc. shares (AMD) to hold from buy on Wednesday, a day after the company gave a disappointing forecast. "With shares currently trading at 33x our 2020 EPS estimate we believe shares are now fairly valued and investors may have an opportunity to buy shares at a more attractive entry point in the future," Schwab wrote. He highlighted that AMD's management sees its product ramps on track for the second half of the year but that the company is also seeing worse-than-anticipated declines in China and semi-custom chips, which helped fuel AMD's lowered outlook for the full year. AMD shares are down 3.2% in premarket trading after the report. They've gained 83% so far this year, as the S&P 500 has risen 20% and the PHLX Semiconductor Index has moved up 38%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
July 31, 2019 08:18 ET (12:18 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.