AMD shares plunge after Goldman Downgrades the Company

Shares of Advanced Micro Devices, Inc. (NASDAQ: AMD) are under pressure on Thursday as the company faces competition from Intel Corp. (NASDAQ: INTC) and NVIDIA Corp. (NASDAQ: NVDA), according to Goldman Sachs Group, Inc. (NYSE: GS).

Goldman Analyst Toshiya Hari cut his target price to $11 on the stock, representing 22 percent downside from AMD Wednesday’s closing price of $14.17. He said the company is now “priced for perfection”, according to his note to clients Thursday.

“We see two potential pitfalls to the company’s long-term financial targets,” said Hari. “If AMD were to gain meaningful traction with its new products in 2017, we believe Intel and Nvidia would be likely to fight back in late-2017 and/or 2018 in the form of pricing concessions.”

AMD shares was down 6.35 percent to $13.27 on Thursday. The stock are up 25 percent this year and 406 percent in the past 12 months through Wednesday.

In March, AMD Launched Ryzen 7 processors materializes with three 8-core Ryzen 7 models on the market. Ryzen 5 and Ryzen 3 processors are planned for launches later in the year.

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