Shares of Advanced Micro Devices fell nearly 4% in premarket trade Thursday after Goldman Sachs initiated coverage on the stock with a sell rating. Analyst Toshiya Hari slapped an $11 12-month price target on the stock, which implies 22% downside from Wednesday's close price of $14.17. While Hari acknowledged the strides AMD has made under Chief Executive Officer Lisa Su since she was appointed in 2012, he said the stock seems to have already priced in a sharp improvement in its competitive and financial position. He finds current valuation metrics difficult to justify and expects shares to underperform the market after AMD's analyst day in May. Among the problems facing AMD is competition from Intel Corp. and Nvidia Corp. , which Hari said will likely offset any meaningful traction AMD gets with new products. Shares of AMD have increased 25% in the past three months and more than 400%in the past year, vastly outperforming the S&P 500 , up 3% and 14%, respectively.
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