Tags: US | AMD | Mover

Goldman Sachs Puts Advanced Micro on Sell List

Tuesday, 02 February 2010 01:15 PM EST

Goldman Sachs added Advanced Micro Devices to its "Conviction Sell List" on Tuesday, predicting more sizable losses for the chip maker this year.

AMD made its first profit in three years in the fourth quarter of 2009 because of a $1.25 billion legal settlement from rival Intel Corp., the world's biggest provider of chips for personal computers. But the company would have lost about $57 million, otherwise.

"We expect the company to continue to generate sizable losses in 2010," Goldman analyst James Covello told investors in a note.

He said the company will suffer from its exposure to the low-end desktop business and may lose ground to competition in the server market.

Covello noted that AMD shares have more than tripled over the past year, an indication investors have already taken account of the broader recovery in computer sales.

He reiterated a price target of $5.50, which would be a roughly 30 percent drop from the current share price.

Shares of Advanced Micro Devices Inc. fell 13 cents, or 1.6 percent, to $7.85.

© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Markets
Goldman Sachs added Advanced Micro Devices to its Conviction Sell List on Tuesday, predicting more sizable losses for the chip maker this year.AMD made its first profit in three years in the fourth quarter of 2009 because of a $1.25 billion legal settlement from rival...
US,AMD,Mover
173
2010-15-02
Tuesday, 02 February 2010 01:15 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved