PS - I predicted this!AMD hits year low on product delays
December 17, 2007: 07:23 PM EST
Dec. 17, 2007 (Thomson Financial delivered by Newstex) --
NEW YORK (AP) - Shares in microchip maker Advanced Micro Devices Inc. hit a year low Monday on continuing negative reaction to the company's analyst meeting last Thursday.
In a note to investors, Citi (NYSE:C) analyst Glen Yeung said his view of the company was confirmed at the meeting, in which AMD (NYSE:AMD) acknowledged delays in key products.
Yeung said AMD's problems opened an opportunity for competitor Intel Corp. (NASDAQ:INTC) to add market share in high-margin notebook and server chips.
He noted AMD raised its 2008 guidance above current analyst consensus and said the company's estimates were 'overly optimistic' and built on 'unrealistic assumptions.'
AMD, which has been hit by a series of delays in key products, acknowledged its shortcomings at the analyst meeting and said it aims to reach profitability in the second half of 2008 after losses in every quarter of 2007.
Its shares fell 48 cents, or 5.7 percent, to a 52-week low of $7.95 Monday. Shares had traded between $8.42 and $23 over the past year.