UBS Lowers Advanced Micro to 'Reduce'
UBS Financial downgraded Advanced Micro Devices (AMD ) to reduce from neutral.
Analyst Thomas Thornhill says the chipmaker is losing more market share from rival Intel than he had expected. He says the loss of market share from Intel is going to be challenging to take back, and cash flow is getting thin. He was looking for a loss of 28 cents for the second quarter, but says it now looks like a loss of 60 cents is a more appropriate estimate.
Even if AMD does see some seasonal pick-up, Thornhill thinks there will be losses in the range of 40 cents to 50 cents per share in the third quarter. Going into 2004, he'd look for breakeven until the back half of the year.