AMD Downgraded Over Long-Term Market Pressures From Nvidia’s Arm-Based CPUs

Melius Research cuts AMD's rating to 'Hold' and lowers its price target, citing competitive challenges in the x86 server and PC markets.

Melius Research downgraded AMD from 'Buy' to 'Hold' and reduced its price target from $160 to $129 due to concerns about long-term market pressures.
The downgrade highlights Nvidia's competitive push into x86 server and PC markets with Arm-based CPUs optimized for accelerated computing.
Analyst estimates for AMD's future revenue and earnings growth have been reduced, reflecting a more cautious outlook on its Data Center and PC CPU segments.
Potential U.S. tariffs on semiconductors from Taiwan could disproportionately affect AMD, which relies heavily on Taiwan Semiconductor Manufacturing Company (TSMC).
AMD's current Turin chip is performing well, but analysts predict increasing challenges from Nvidia and other competitors in the evolving semiconductor landscape.