Analysts downgrade AMD to sell

FINANCIAL ANALYSTS Think Equity scribbled a note to their clients saying it's switched its position from buy to sell on AMD because it will be hurt by a couple of things in Q3 and Q4.

In the note, it said it thought the Dell supply chain is using AMD CPUs far slower than anticipated - down to Dell, not to AMD, Think Equity reckons.

And that, it reckons, is causing revenue problems for AMD.

Also, says TE, AMD is suffering from INTC price competition, while Intel nexgen chips are "swamping the supply chain".

It reckons INTC will write off loads of its low end stock but if we understand things aright, it's already flushed a lot of the old stuff between February and now. Intel has EOLed heaps of its old gear already and we're already deluged with offers to buy Netbust chips at ridiculous rates.

Nevertheless, every crowd has a silver lining, and TE thinks this is only a short term glitch for AMD. Its target price now for AMD is $20. Yesterday, on the Money Street, INTC closed at $20.39, AMD at $25.32. If TE is right, won't Dell stock be affected? µ