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AMD Stock Falls After Downgrade From BofA, Citing Risks From Competition

12/10/2024

Key Takeaways

Advanced Micro Devices shares misplaced floor Monday after Bank of America downgraded the inventory and lowered its value goal, warning of draw back dangers for the chipmaker in 2025.
The financial institution dropped its ranking to “impartial” from “purchase” and lowered its value goal to $155 from $180.
The analysts stated AMD faces rising competitors for synthetic intelligence (AI) chips from Nvidia, and a rising buyer desire for cloud customized chips from Marvell Technology and Broadcom.

Shares of Advanced Micro Devices (AMD) fell Monday after Bank of America downgraded the inventory and lowered its value goal, warning of draw back dangers for the chipmaker in 2025.

The financial institution downgraded the inventory to “impartial” from “purchase,” and lower its value goal to $155 from $180.

In a notice to purchasers Monday, the analysts pointed to elevated competitors from Nvidia (NVDA) for synthetic intelligence (AI) semiconductors, and “rising cloud desire for customized chips” from Marvell Technology (MRVL) and Broadcom (AVGO), which may restrict AMD’s potential market-share beneficial properties.

Anticipating a Slowdown in Demand for PC Processors

The analysts additionally expressed issues a few potential slowdown in demand for PC processors within the first half of subsequent 12 months after a leap on this 12 months’s second half.

However, they famous AMD may increase its place within the central processing unit (CPU) market as Intel (INTC) undergoes a probable restructuring, whereas additionally benefiting from Nvidia AI chip provide constraints.

Advanced Micro Devices shares fell greater than 5% Monday to shut at $130.87, and have misplaced about 11% of their worth this 12 months.

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