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Stay Away from AMD and Intel Shares - Barclays

By Senad Karaahmetovic



Barclays analyst Blayne Curtis reiterated an Equal Weight rating on AMD (NASDAQ:AMD) and Underweight on Intel (NASDAQ:INTC) amid a “much weaker 2H outlook.”


While headwinds facing Intel are well-understood, Curtis says AMD is not immune to the slowdown despite the company reiterating its full-year guidance recently. Curtis notes corrections that will likely take place in several end markets, such as PC, Gaming, Semi-custom, servers, Xilinx, etc.


“We are taking down estimates for both companies, but they may have to come down even further as these cuts are just starting. For both, we just see no reason to own these names until the size of the correction is better understood. When we downgraded AMD, we pointed to 2024 as the real make or break year for INTC as that is when they will have first products on Intel 4/3. It does appear that Intel’s roadmaps continue to slip to the right with Granite Rapids (Intel 3) and Meteor Lake (Intel 4) due out at the end of 2023,” Curtis told clients in a note.


The analyst is telling clients to stay away from buying a dip in AMD shares. A new price target on AMD stock is $85 per share, down from $115.


Intel stock price target is cut to $40 from $45.


AMD and INTC shares are down 1.5% and 0.7%, respectively, today.

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