AMD Shares Plummet After Crypto Plateau Prediction




/ 7 years ago

AMD Shares Plummet After Crypto Plateau Prediction

AMD shares plummeted today after Morgan Stanley predicted its cryptocurrency-inspired boon will crash in 2018. Specifically, Morgan Stanley reduced AMD’s share rating from equal-weight to underweight. In other words, the financial services company now considers AMD shares overvalued. Therefore, in this case, “underweight” means investors should reduce their stock holding. Effectively, the firm is telling investors to sell AMD stock. Morgan Stanley’s justification for its underweight rating is an impending deceleration of the cryptocurrency trend; AMD’s graphics card sales are particularly benefitting from high demand by crypto miners.

Morgan Stanley’s Crypto Plateau Prediction

Joseph Moore, a Semiconductor Industry Analyst at Morgan Stanley, wrote to clients (via CNBC):

“[AMD’s] fundamental outlook is not quite as robust as microprocessor momentum has been slow to build, offset by cryptocurrency gains. [Morgan Stanley believes] that AMD’s graphics surge has been caused by a sharp increase in sales of graphics chips to cryptocurrency miners. We expect this to meaningfully decelerate next year.”

Moore adds that Morgan Stanley expects “[C]ryptocurrency to gradually fade from here, consoles to decline, and graphics to be flattish. However, Moore does praise AMD’s accomplishments this year. He does, though, stress that AMD’s downturned rating is in anticipation of a weaker 2018.

AMD Shares Drop

As a result of Morgan Stanley’s downgraded rating, AMD shares dropped nearly 10% today. However, AMD stock is still 64% up over the last year, thanks to the release of both its Vega GPU and Ryzen CPU architectures.


Topics: ,

Support eTeknix.com

By supporting eTeknix, you help us grow and continue to bring you the latest newsreviews, and competitions. Follow us on FacebookTwitter and Instagram to keep up with the latest technology news, reviews and more. Share your favourite articles, chat with the team and more. Also check out eTeknix YouTube, where you'll find our latest video reviews, event coverage and features in 4K!

Looking for more exciting features on the latest technology? Check out our What We Know So Far section or our Fun Reads for some interesting original features.

eTeknix Facebook eTeknix Twitter eTeknix Instagram eTeknix Instagram
  • Be Social With eTeknix

    Facebook Twitter YouTube Instagram Reddit RSS Discord Patreon TikTok Twitch
  • Features


Send this to a friend
})