AMD’s stock carries downside risk, Citi warns

Citi Research analyst Christopher Danely opened a downside 90-day catalyst watch on shares of Advanced Micro Devices Inc. AMD, -1.78% Monday, warning of potential risks to key markets. “We expect downside to estimates driven by the correction in the data center/gaming/embedded markets,” which are expected to make up about 84% of sales for the calendar year, he wrote. Danely has a neutral rating on AMD’s stock and said he sees possible downside to consensus expectations amid “strong expectations driven by the MI 300 chip ramp.” Meanwhile, the company’s market-share gains in servers could be offset by a general data-center slowdown. AMD shares were off 1.6% shortly after Monday’s open.