Banc of America lowered Advanced Micro Devices (AMD

) to neutral from buy.

Analyst John Lau says his revised outlook for Advanced Micro reflects a deteriorating price environment for NOR flash products, and a revised view on the semiconductor cycle for 2005. He believes weakness in NOR flash products will likely offset strength in PC processors.

Lau cut his $1.344 billion third-quarter revenue estimate to $1.374 billion and trimmed the 15 cents EPS to 13 cents. He cut the $5.372 billion 2004 revenue estimate to $5.298 billion, cut the 54 cents EPS to 51 cents, lowered the $5.986 billion 2005 revenue estimate to $5.597 billion, and reduced the 83 cents EPS to 53 cents, below the 76 cents consensus.

Also, Lau lowered the $20 target price on Advanced Micro to $12. He cut the $32 Intel target to $27, lowered the $14 Micron Technology target to $12, cut the $32 Texas Instruments target to $24, reduced the $42 Broadcom target to $36, and trimmed the $5 LSI Logic target to $4.