Schaeffer's Trading Floor Blog

Analyst Downgrades: Advanced Micro Devices, Inc., SunPower Corporation, and NVIDIA Corporation

Analysts downwardly revised their ratings on AMD, SPWR, and NVDA

by 6/23/2014 9:21 AM
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Analysts are weighing in today on semiconductor concern Advanced Micro Devices, Inc. (NYSE:AMD), alternative energy company SunPower Corporation (NASDAQ:SPWR), and graphics chip maker NVIDIA Corporation (NASDAQ:NVDA). Here's a quick roundup of today's bearish brokerage notes.

  • Pacific Crest lowered its rating on AMD to "underperform" this morning, after the shares plunged more than 8% over the last three days to trade at $4.10. Meanwhile, in the options pits, Advanced Micro Devices, Inc. is staring at heavier-than-usual put open interest (compared to call open interest) among options expiring within the next three months. This is evidenced by the equity's Schaeffer's put/call open interest ratio (SOIR) of 0.89, which ranks higher than 78% of similar readings taken over the last 12 months.

  • Although SPWR has advanced 37% over the last two months to perch at $40.27, Brean downgraded the stock to "hold" from "buy" this morning. Elsewhere, nearly 22% of SunPower Corporation's available float is sold short, which is equivalent to more than a week's worth of pent-up buying demand, at the shares' average daily volume. Given this healthy amount of sideline cash, SPWR may end up benefiting from a potential short-squeeze scenario in the near term.

  • Like AMD, NVDA was slapped with a downgrade to "underperform" from "sector perform" at Pacific Crest this morning. On the charts, NVIDIA Corporation has grown more than 18% since the start of 2014 to trade at $18.93. However, 16 of the 25 analysts covering the equity have dished out "hold" or worse ratings. Meanwhile, the average 12-month price target of $19.13 is just a chip-shot away from the stock's current perch.

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