Jim Cramer Believes Advanced Micro Devices (AMD) Stock Being Down Isn't Indicative of Performance

We recently published 17 Stocks Jim Cramer Talked About.  Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks that Jim Cramer talked about.

Chip designer Advanced Micro Devices, Inc. (NASDAQ:AMD)’s shares are up by 81% over the past year and are down by 7% year-to-date after they closed 17% lower on February 4th. On February 12th, DA Davidson initiated coverage on the stock. It set a Neutral rating and a $220 share price target to outline that while Advanced Micro Devices, Inc. (NASDAQ:AMD)’s GPUs offered great specifications on paper, real world floating point operation utilization was significantly below the paper specifications. In early February, Goldman Sachs reiterated a Neutral rating and a $220 share price target on Advanced Micro Devices, Inc. (NASDAQ:AMD)’s shares. The bank pointed out that the company had suffered from operating expenses in its latest earnings report. After the selloff, Cramer discussed the firm’s CPU business:

“Shares of AMD, I don’t even want to say taking a hit, because the reason why is the stock’s up very big in the last few weeks. But it’s coming off today, the company beat the estimates. They boosted by exactly what David was talking about, which is the booming data center business. But also, and I think we’re really going to miss the point, and the analysts missed the point badly, by the CPU business, which is the business that competes against Intel. We gotta learn about both of them because the CPU business was completely left out by the analysts, it was kind of pathetic.

“I know the stock’s down but it has had a run recently and I don’t think it’s at all indicative of how well this company’s doing.”

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Disclosure: None. This article is originally published at Insider Monkey.