Advanced Micro Devices, Inc. (AMD) Feeling the Effects on Wall Street of Apple’s (AAPL) Scaleback?


Apparently not just investors of Apple (NASDAQ:AAPL) feel the effects of less than spectactular news about the company. Today, Advanced Micro Devices, Inc. (NASDAQ:AMD) is feeling the effects on Wall Street as well. Earlier today, we reported that parts for the iPhone had been cut back, signalling to some a decrease in sales for Apple. Whether this news acutally points to a cut-back in manufacturing on part of Apple or not, it does appears as though Wall Street believes it to be the case.

Advanced Micro Devices, Inc. (NASDAQ:AMD), however, makes chips for many of Apple’s devices, thus meaning if Apple is in fact seeing a decline in production, that means less AMD chips will be required. Again, this is all based on speculation, but it’s speculation that is causing investors to sell shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) today.

If in fact the reason for Apple’s cut in orders of iPhone parts is because they are preparing for an early release of the iPhone 7, then this should mean good things for shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) in the Future.

The stock is down 9.09% or $0.25 following the news, hitting $2.5 per share. Approximately 11.01M shares traded hands. AMD shares have risen 19.57% since June 2, 2015 and are currently uptrending. It has outperformed the S&P500 by 24.26%.

From a total of 3 analysts covering Advanced Micro (NASDAQ:AMD) stock, 1 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 33% of the ratings are positive. The highest target price is $2.05 while the lowest target price is $2.0. The mean of all analyst targets is $2.03 which is -18.80% below today’s ($2.5) stock price. Advanced Micro was the topic of 3 analyst reports since August 13, 2015 according to the firm StockzIntelligence Inc. Vetr upgraded shares on September 22 to a “Strong-Buy” rating. Topeka Capital Markets initiated AMD stock in a recent report from August 13 with a “Hold” rating.

The institutional sentiment decreased to 0.63 in Q2 2015. It’s down 0.42, from 1.05 in 2015Q2. The ratio worsened, as 38 funds sold all their Advanced Micro Devices, Inc. shares they owned while 73 reduced their positions. 23 funds bought stakes while 47 increased their total positions. Institutions now own 293.84 million shares which is 8.23% less than the previous share count of 320.18 million in 2015Q2.

Shanda Payment Holdings Ltd. holds 9.11% of its total portfolio in Advanced Micro Devices, Inc., equating to 6.08 million shares. Mcglinn Capital Management Inc owns 91,600 shares representing 0.48% of their total US portfolio. Moreover, Two Sigma Securities Llc has 0.47% of their total portfolio invested in the company, equating to 174,607 shares. The New York-based Stone Ridge Asset Management Llc has a total of 0.32% of their portfolio invested in the stock. Chicago Equity Partners Llc, a Illinois-based fund reported 5.61 million shares owned.

Advanced Micro Devices, Inc. is a global semiconductor firm with facilities across the world. The company has a market cap of $2.09 billion. The Firm offers x86 microprocessors, as standalone devices or as incorporated as an accelerated processing unit , chipsets, discrete graphics processing units (GPUs) and professional graphics, and server and embedded processors, dense servers, semi-custom System-on-Chip (SoC) products and technology for game consoles. It currently has negative earnings. The Firm operates in two divisions: the Computing and Graphics segment, which includes desktop and notebook processors and chipsets, discrete GPUs and professional graphics, and the Enterprise, Embedded and Semi-Custom segment, which includes server and embedded processors, dense servers, semi-custom SoC products, engineering services and royalties.