AMD Stock Downgraded as AI Competition and PC Market Risks Loom

Analysts cite Nvidia's dominance, emerging AI chip rivals, and potential PC market slowdown as key challenges for AMD's growth prospects.

Bank of America downgraded AMD's stock from 'buy' to 'neutral' and reduced its price target from $180 to $155, citing significant competitive and market risks.
AMD faces increasing competition in the AI chip market from Nvidia, as well as custom chipmakers like Broadcom and Marvell Technology, which are gaining traction with cloud providers and hyperscalers.
Analysts predict a potential correction in the PC market in early 2025, which could impact AMD's client segment following strong growth in the first half of 2024.
AMD's flagship AI chip, the MI300, has faced concerns over a slower-than-expected ramp-up, with Q4 revenue forecasts falling short of Wall Street expectations.
Despite challenges, analysts recognize AMD's ability to capitalize on Intel's struggles and maintain a 15-20% annual growth trajectory in the fast-growing AI market.