Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why Advanced Micro Devices, Inc. (AMD) Shares Plunged Today

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares have fallen over 8.5% this morning courtesy of an analyst downgrade. In particular, Toshiya Hari of Goldman Sachs initiated a ‘Sell’ rating and a $11 per share price target, opining that in his view, AMD’s current valuation suggests ‘very bullish’ expectations for 2018, which might not occur given the potential competition from Nvidia and Intel. Furthermore, the analyst believes much of the company’s future improvement/good news has already been priced in.

Given Goldman’s substantial pull on the Street as generally the smartest people in the room and Advanced Micro Devices, Inc. (NASDAQ:AMD)’s massive gains (up 400% over the last four quarters), some traders are apparently choosing to take some money off the table and play with house money. Whether the Goldman downgrade will permanently affect sentiment is anyone’s guess, however.

What Does The Smart Money Sentiment Say?

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see details here).

In terms of elite fund activity, our data shows that a substantial number headed for the exits in Q4, but the total amount held by the smart money nevertheless rose. Of the 742 elite funds we track, 32 funds owned $857.62 million of Advanced Micro Devices, Inc. (NASDAQ:AMD) and accounted for 8.20% of the float on December 31, versus 47 funds and $644.56 million respectively on September 30.

The Bottom Line

Advanced Micro Devices, Inc. (NASDAQ:AMD) shares are sharply lower today after Goldman Sachs initiated a $11 price target and ‘Sell’ rating. For more reading, check out ‘Top 5 Ways in which Technology has Changed the Way We Look at Money‘.


motherboard, circuit, chip, Intel, Micron, Qualcomm, AMD

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
This is a FREE report from Insider Monkey. Credit Card is NOT required.