Why did Advanced Micro Devices stock drop today? Blame Barclays' downgrade
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Advanced Micro Devices (NASDAQ:AMD) shares fell on Thursday after Barclays downgraded the semiconductor company on concerns over the company's 2023 performance, citing "elevated levels" of growth in several of the company's end-markets.
Analyst Blayne Curtis lowered his rating on AMD to equal weight from overweight and cut the price target to $115 from $148, noting that even though revenue is still likely to grow 31% this year, concerns that growth rates in PCs, gaming and anything associated with the Xilinx acquisition could cool next year.
"We don't have a smoking gun pointing to a correction underway in any of these markets, but it's very clear to us that all 3 segments are running at elevated levels," Curtis wrote in a note to clients.
Advanced Micro Devices (AMD) shares dropped sharply on Thursday, losing nearly 8% to $110.01 on heavy volume.
Curtis also pointed that AMD's growth trajectory coming out of this "potential correction" is a big question. The analyst also noted that the competitiveness of Intel (INTC) and Arm, which is set for a U.S. initial public offering by the end of Softbank's (OTCPK:SFTBF) fiscal 2023, could be issues. 
"We would rather move to the sidelines until we have better clarity as to the magnitude of these corrections and what the competitive landscape will look like as [Intel] catches up and ARM takes more share," the analyst explained.
In February, Bank of America said Nvidia (NVDA) and AMD (AMD) were likely to continue reaping the benefits of the upgrade cycle in the graphics chip market, adding that the second-half of the year should see stronger growth, as supply and mix improve.