(Bloomberg) -- Advanced Micro Devices Inc. shares plunged 20 percent in pre-market trading Thursday after forecasts and results disappointed Wall Street, and at least one analyst sees potential for history to repeat next quarter.
“AMD is at significant risk of yet another guidance miss next quarter” as the company works through the remaining third of its estimated $400 million headwind from the cryptocurrency mining hangover, and as demand for its graphics processing units fades, Susquehanna analyst Christopher Rolland writes in a note. He rates the stock neutral and cut his price target to $19 from $22. The average price target as compiled by Bloomberg is $24.
Rolland believes management underestimated the cryptocurrency contribution to revenue. The hit to third-quarter results and fourth-quarter forecasts may leave investors skeptical on the company’s expectation that momentum behind its new Epyc products will accelerate in the fourth quarter, he said.
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