Goldman Sachs removed Advanced Micro Devices Inc (NASDAQ:AMD) from its conviction list Monday and lowered the price target on the stock from $159 to $127.
Virtus Investment Partners' Joe Terranova decided to buy AMD shares in the wake of lower analyst expectations.
Terranova's Take: "We already knew that the comps were going to be challenging for AMD as we move through 2022 and that's really what is highlighted in this note," Terranova said Monday on CNBC's "Fast Money Halftime Report."
Related Link: Here's How Goldman Sachs Views Microchip, AMD
Terranova noted that he hasn't been actively searching for buying opportunities in tech or higher-valuation stocks over the last few weeks, but the AMD opportunity is hard to ignore, he said.
"In the last several days you saw a tremendous opportunity to get into a reasonably valued growth technology stock and I think the expectations have been reset," Terranova said. "We're understanding of that, and I think there's upside potential as we move forward over the coming quarters."
He told CNBC that he began building his AMD position this week and plans to continue to add to the stock on weakness.
AMD Price Action: AMD has traded between $72.50 and $164.45 over a 52-week period.
The stock was down 0.69% at $118.84 at time of publication.
Photo: courtesy of AMD.
