Robbie Stephens Cuts Advanced Micro to 'Market Perform'

Analyst Eric Rothdeutsch says PC demand continues to be weak, particularly in Europe

Robertson Stephens downgraded Advanced Micro Devices (AMD ) to market perform from buy.

Analyst Eric Rothdeutsch says PC demand continues to be weak, particularly in Europe where the company has a solid mindshare vs. the U.S. market. He sees a positive early market reaction to the company's 64-bit Opteron, however, volume production is not expected until early 2003.

Rothdeutsch says the company is in a difficult production and pricing position as Intel has accelerated its new product roadmap, especially for its Pentium 4 Celeron products. He widened his $0.06 2002 loss estimate to a $0.22 loss and cut his $0.70 2003 earnings per share estimate to $0.50 EPS.

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