With the release of its Q1-2017 financial results, AMD’s stock on the NASDAQ took a huge hit, posting the biggest single-day loss in 12 years. The stock fell 24.22 percent, down $10.30 per share. This is only beat out by the 26.2 percent percent drop on January 11th 2005. Analyst Christopher Rolland at Susquehanna Financial said that only a “near-perfect” Q1 results by AMD could have prevented this crash from happening.
Rolland wrote in a letter to his clients, “AMD’s new products are beginning to accelerate growth, but perhaps without all the gross margin benefits [they] had hoped for.” Susquehanna Financial is keeping its rating of AMD neutral, hoping that the upheaval will settle down at $12 (a recovery from its current $10.3). UBS analyst Stephen Chin feels differently and has posted a sell rating with a price target of $9. “We keep our sell rating on the stock as we see limited EPS growth near term to support its high multiple as it need to invest heavily to keep pace with Intel and NVIDIA,” Chin wrote.