SA analyst upgrades/downgrades: AMD, SNOW, MU, and ABBV

[Bear and bull stock market]

Oakoff Investments has upgraded Snowflake (NYSE:SNOW [https://seekingalpha.com/symbol/SNOW]) to Buy after previously underestimating its potential, citing strong financial performance and AI-driven growth. Meanwhile, Tech Stock Pros upgraded AMD to a tactical Buy, suggesting positive developments in U.S.-China relations could benefit the chipmaker.

On the downside, Cory Cramer announced he’s trimming his position in Micron Technology (NASDAQ:MU [https://seekingalpha.com/symbol/MU]), following his cyclical investment strategy, while Envision Research has downgraded AbbVie (NYSE:ABBV [https://seekingalpha.com/symbol/ABBV]) to Sell due to valuation concerns and policy uncertainties.

UPGRADES

* Snowflake Inc. (NYSE:SNOW [https://seekingalpha.com/symbol/SNOW]): Upgrade to Buy by Oakoff Investments [https://seekingalpha.com/article/4823356-snowflake-palantirs-growth-at-a-fraction-of-the-price-rating-upgrade]. The analyst cites 32% YoY revenue growth, 94% YoY non-GAAP EPS growth, and the company’s successful AI strategy as driving factors for the upgrade. _“I am upgrading Snowflake to a ‘Buy’ rating after underestimating its potential, which was proven by its recent stock performance and strong Q2 earnings… I see Snowflake’s strength, and it’s hard to argue against the underlying fundamentals. While the market’s post-earnings reaction looks a bit overdone and there might be a medium-term weakness ahead, we don’t see a huge multiple expansion since October 2024 on a forward basis.”_

* Advanced Micro Devices, Inc. (NASDAQ:AMD [https://seekingalpha.com/symbol/AMD]): Upgrade to Tactical Buy for intra-quarter trading by Tech Stock Pros [https://seekingalpha.com/article/4823334-amd-things-with-china-are-darkest-before-the-dawn-rating-upgrade]. The analyst points to a more attractive valuation after the stock’s recent pullback and potential positive developments in U.S.-China relations regarding chip exports. _“We think the U.S.-China are in Madrid now working on ironing out the details of this chip war. We think that China will allow the sale of U.S. AI chips again in the region, considering that the country needs hardware to be able to grow its AI capacity and cannot do that at the moment on 7nm nodes from SMIC… We see now as an attractive buying opportunity for an intra-quarter trade but warn investors against staying too exposed into the Q3 print in early November.”_

DOWNGRADES

* Micron Technology, Inc. (NASDAQ:MU [https://seekingalpha.com/symbol/MU]): Position trimming by Cory Cramer [https://seekingalpha.com/article/4823393-why-i-am-trimming-my-micron-position-rating-downgrade]. The analyst is selling half his position based on his cyclical investment strategy, which focuses on not trying to predict market tops for cyclical businesses. _“That is why I’m selling half of my position now. This is simply how my cyclical strategy works. I don’t try to get greedy or predict tops with cyclical businesses… I’m happy to bank some excellent early returns with the Micron position. I’m going to continue to monitor the demand from AI, the macroeconomy, and the balance in my portfolio in order to decide if and when to sell the other half of my position.”_

* AbbVie Inc. (NYSE:ABBV [https://seekingalpha.com/symbol/ABBV]): Downgrade to Sell by Envision Research [https://seekingalpha.com/article/4823412-abbvie-best-time-to-sell-in-5-years-rating-downgrade]. The analyst cites heightened valuation risks, with the stock’s dividend yield at a 5-year low and difficulty justifying its premium over the healthcare sector. _“ABBV’s valuation risks are unusually heightened judging by the current dividend yield. To wit, with the recent stock price rallies, the stock’s current dividend yield has dropped to 2.97% as you can see from the following chart. This is significantly below its 5-year average of 3.93% and also the lowest point in at least 5 years… In the case of ABBV, we see an unfavorable risk/return profile either compared to its own historical norm or the broader sector.”_

MORE ON MARKETS

* Is a recession on the horizon or not? SA analysts weigh in [https://seekingalpha.com/news/4495728-is-a-recession-on-the-horizon-or-not-sa-analysts-weigh-in]
* Apollo: Investors face growing risk from overexposed AI concentration [https://seekingalpha.com/news/4495651-apollo-investors-face-growing-risk-from-overexposed-ai-concentration]
* Top 10 S&P 500 performing stocks ahead of the Fed's rate decision [https://seekingalpha.com/news/4495330-top-10-sp-500-performing-stocks-ahead-of-the-feds-rate-decision]
* BlackRock stays risk-on as Fed readies for expected rate cut amid softer jobs market [https://seekingalpha.com/news/4495312-blackrock-stays-risk-on-as-fed-readies-for-expected-rate-cut-amid-softer-jobs-market]
* Seeking safety? SA analysts rank the best dividend plays ahead of Fed's rate decision [https://seekingalpha.com/news/4494463-seeking-safety-sa-analysts-rank-the-best-dividend-plays-ahead-of-feds-rate-decision]