Wall Street is Losing Faith in AMD and Even Intel Pretty Fast
Although most of the AMD vs Nvidia vs Intel discussions revolve around the upcoming products that would flip the face of the situation for all the companies, Wall Street brokers are not that satisfied with the way at least Nvidia’s archrival and Intel are performing.
The reason for this is the less than stellar performance of the PC market in the recent past. The financial analysts don’t have a lot of faith in the PC market and apparently, they are not expecting it to bounce back for these two companies at least.
This is why a number of the experts are advising their customers against investing in the shares of these two companies.
As far as AMD is concerned, UBS AG a Swiss global financial services company believes that the company will not return to positive cashflows and profits in the near future. They have not only lowered their stock price estimates of the company for the next two fiscal years but also advised customers to sell their stocks.
Stephen Chin, an analyst at UBS says that this is basically because of hte poor performance of the PC market which they do not expect to improve. Gaming and VR in general is a totally different story, though.
Similarly, AllianceBernstein L.P., a global asset management firm, says that Intel is going to underperform which is why they have lowered the share price estimates of Intel as well.
According to them, Intel’s first quarter is going to be very weak while the estimates of second and third quarter will also need to be downgraded by a great margin.
Do you think Zen will make the difference needed for AMD? Or is it going to be Nvidia all the way in the future?