Advanced Micro Devices, Inc. (NYSE:AMD) lost 3.94% in yesterday’s trading session closing at $3.41. The shares of the chip company had twice the regular trade volume with as many as 50 million shares exchanged during the day. TheStreet team reiterated its “hold” rating for the company.

TheStreet Ratings team added,

“The company’s strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and generally higher debt management risk.”

One of the primary reasons to worry is the high debt-to-equity ratio of the company, which stands at 4.41 and quite higher than the industry average. Further, Advanced Micro Devices, Inc. (NYSE:AMD) has declined nearly 7.17% from its last year’s share prices. The company reported revenue of $1.44 billion in the second quarter 2014 with a gross margin of 35 percent and $63 million in operating income.

Experts are expecting downward rally near its October 16 pre-earnings calls and the share might test yearly lows, hence adding to the selling pressure. Advanced Micro Devices, Inc. (NYSE:AMD) is trying everything possible to stabilize its core business but the company’s stock is currently viewed as a speculation. It has underperformed NASDAQ ETF, although there have been sudden swings between underperformance and over performance.

Apple Inc (NASDAQ:AAPL) might have some good news for AMD as the company plans to use graphics processor from the chip company in its next-generation iMac. Further, the likeliness of the deal being struck is high considering that both the companies have worked earlier in prior iMacs and MacBook Pro models.

This article has been written by Prakash Pandey.