AMD Stock Slips on Threadripper Pro Pricing

Business Insider

2 days ago

Advanced Micro Devices (AMD) stock was down on Friday after the semiconductor company revealed the price of its Threadripper Pro 9000 WX-Series CPUs. The Zen 5-based processors will start at $1,649 and will top out at $11,699 when they are released on July 23.
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Investors might be sticker-shocked by the price of these new AMD processors, but it's worth noting these aren't for the average computer user. Instead, the Threadripper Pro line is designed with professionals in mind. The large number of cores allows them to be used in powerful applications, such as rendering and artificial intelligence (AI).
AMD is also expected to release Threadripper processors that are more reasonably priced. These will lack the Pro designation, but will still offer plenty of power to computer builders. However, the company has yet to reveal how much these CPUs will set consumers back.
AMD Stock Movement & Analyst Updates
AMD stock was down 1.57% in pre-market trading on Friday, but remained up 30.81% year to date and 5.83% over the past 12 months.
AMD stock has also received several analyst updates this week, as traders prepare for the release of the company's earnings report in early August and celebrate the end of an AI chip export ban on China. That coverage includes new ratings and price targets from top analysts.
Bank of America Securities' Vivek Arya reiterated a Buy rating and increased his price target to $175 from $130.
Mizuho Securities' Vijay Rakesh upgraded the stock to Buy and raised his price target to $175 from $152.
Wells Fargo's Aaron Rakers maintained a Buy rating and boosted his price target to $185 from $120.
Bernstein's Stacy Rasgon initiated coverage with a Hold rating and a $95 price target.
Piper Sandler's Harsh Kumar kept a Buy rating and a $140 price target.
Is AMD Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts' consensus rating for AMD is Moderate Buy, based on 25 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $141.87, representing a potential 9.88% downside for the shares.