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Chip Stock Takes a Breather After Analyst Bear Note

There room for more pessimism to unwind amongst the brokerage bunch

Deputy Editor
Mar 31, 2022 at 9:56 AM
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Advanced Micro Devices, Inc. (NASDAQ:AMD) is down 2.1% to trade at $116.70 this morning, after a bear note from Barclays. The firm downgraded the semiconductor giant to "equal weight" from "overweight," with a price-target cut to $115 from $148, saying that while the company will continue to gain market share over competitor Intel (INTC) in the next few years, there's multiple end markets long-overdue for correction that will eventually stymie growth.

On the charts, Advanced Micro Devices stock began trending lower, after a Nov. 30 all-time high of $164.46. While today's drop has AMD gapping to its lowest level in a week, the 30-day moving average remains below as potential support for the pullback. Year-over-year, AMD is up 46%.

Short-term options traders are unusually put-biased at the moment. This is per AMD's Schaeffer's put/call open interest ratio (SOIR) of 1.21, which stands higher than all other readings in its 12-month range.

It's also worth noting the equity's Schaeffer's Volatility Scorecard (SVS) stands at a relatively high 83 out of 100. This means the equity has exceeded options traders' volatility expectations during the past year.

 

 

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