AMD downgraded to Market Perform due to its high valuation: 4 big analyst cuts

investing.com:

Investing.com — Here is your Pro Recap of the biggest analyst cuts you may have missed since yesterday: downgrades at Advanced Micro Devices, Home Depot , Lowe’s, and Lululemon Athletica.

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Northland Capital Markets downgraded Advanced Micro Devices (NASDAQ:AMD) to Market Perform from Outperform, as reported in real-time on InvestingPro.

The analysts noted that the growth in the AI chip market in 2023 was driven by factors such as the popularity of ChatGPT, price increases, double ordering, and stockpiling by Chinese companies.

Looking ahead, the analysts forecast AI chip revenue to reach $125 billion in 2027, with AMD potentially earning $16B in AI revenue and capturing a 13% market share. However, they believe that AMD's current share prices already reflect much higher AI revenue expectations for 2027.

Oppenheimer downgraded Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW) to Perform from Outperform, adopting a more cautious short-term view of the home improvement retail sector.

While maintaining a positive outlook on the long-term potential of the sector and its leading players, the analysts expressed concern that the market might be overly complacent towards Home Depot and Lowe's. The analysts suggested that the current stock prices may not fully reflect the potential for ongoing fundamental challenges at these companies, especially in the early part of fiscal 2024.

Upcoming initial 2024 guidance from HD, LOW could prove unfavorable catalysts for shares. Investors looking to play prospects for strengthening trends in the sector, and at HD and LOW, beginning