AMD Stock Drops 3% Following Jefferies Downgrade Over AI Market Struggles

Jefferies cites Nvidia's performance advantage and rising competition from Intel as key factors in AMD's downgraded growth outlook.

Jefferies downgraded AMD's stock rating from 'Buy' to 'Hold,' lowering the price target from $135 to $120.
AMD's stock fell over 3% to $105.55 in early trading on March 27, 2025, and is down more than 40% over the past year.
Nvidia's H200 GPU significantly outperforms AMD's MI300x in AI tasks, with the performance gap expected to widen as Nvidia releases new product lines.
Despite AMD's MI300x featuring higher memory bandwidth, real-world performance tests indicate Nvidia's software ecosystem gives it a decisive edge.
Jefferies highlighted mounting competition from Intel, which is expected to release competitive AI chips next year, further pressuring AMD's position in the market.