Posted February 08, 2019 12:23:46 AMD stock has lost nearly $1 billion in market value in the last three weeks, according to a research firm.
Investors are now weighing the implications of a potential drop in earnings and the company’s continued focus on its chip business.
Shares have plunged nearly 4% in the past two trading sessions.
The loss in the stock comes as AMD struggles to keep pace with Intel and Nvidia.
Analysts expect the stock to hit $8 in the coming weeks, a more modest price than the $8.90 price tag it hit in the previous trading session.
AMD has a solid growth outlook, and analysts are bullish on the company.
The stock has a market cap of $25 billion and is forecast to hit its full market cap by 2023.
Analytics firm IDC says the company is expected to post $2.6 billion in revenue in 2019.
AMD is expected at $7.80, but analysts are expecting a slight drop as a result of the downturn.
The chip company is focused on its next generation APUs and is expected in 2019 to unveil a high-end GPU.
Investors and analysts have also been waiting for AMD to release a new generation of APUs, which are aimed at high-performance computing.
The company is also working on new chips to replace its current generation of chips, including the APUs for the next generation of high-definition graphics chips.
AMD’s shares are trading at a discount to Intel’s and Nvidia’s.
However, the company could have the advantage if it has a new processor, according for example to chip maker Intel.