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?
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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‘.