Advanced Micro Devices Stock Brushes Off Bearish Brokerage Note

The chip stock hit an annual low just last week

BMO cut its price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) by $3 to $12, following a rough stretch for chip stocks. Nevertheless, this new AMD price target stands at a premium to last Friday's close at $9.61, and in early trading, the security is 1.6% higher at $9.69, thanks to broad-market tailwinds.

Since being rejected by the $12.90 region in late February -- a region that was unsuccessfully tested during an early March rally attempt -- AMD stock has shed nearly 25%. What's more, the shares tagged an annual low of $9.04 last Wednesday, April 4.

Amid these recent technical troubles, short sellers have ramped up their exposure, which has likely created even stiffer headwinds for the stock. Short interest rose 9.1% in the March 15 reporting period to 174.08 million shares. This accounts for 21.09% of the stock's available float and is not far from the Dec. 1 multi-year peak of 177.02 million shares.

However, there are a number of analysts who have seemingly refused to budge on their upbeat ratings. Of the 21 brokerages covering AMD stock, 10 still maintain a "strong buy" rating, while the average 12-month price target of $14.24 represents expected upside of 45.6% to the equity's current perch. Advanced Micro Devices shares could be at risk of more bearish brokerage notes, should they resume their longer-term downtrend.