Preudential securities downgraded AMD stock to "sell" from "hold" yesterday, causing Little Zillas share price to drop by 10 per cent and prompting serious questions about whether analysts are anchored to the planet earth or perhaps should set their controls for the heart of the sun. The reason Prudential downgraded AMD is because apparently its chief analyst thinks the only reason Little Zilla is selling chips is because Intel hasnt got enough to satisfy demand.
This, of course, flies in the face of all the evidence yesterday, which gave chapter and verse on how well AMD had done quarter-on-quarter and (QOQ), year on year (YOY). Prue Securities said, according to thestreet.com, which quoted one Hans Mosemann, that the reason for his downgrade was the Pentium 4 shortage of chips.
AMD wouldnt be selling the number of chips they are if Intel didnt have a shortage, is the gist of the advice
News source: The Inquirer