Analysts from Wolfe Research, Goldman Sachs, and HSBC downgrade AMD, citing weak AI chip demand and rising competition. Could the MI350 chip spark a turnaround?

Another analyst is casting doubt on Advanced Micro Devices Inc.’s growth potential in graphics processing units, leading to the latest downgrade of the semiconductor stock. Wolfe Research’s Chris Caso cut his rating on AMD shares AMD to peer perform from outperform on Thursday,

Advanced Micro Devices (NASDAQ: AMD), also known as AMD, has been a surprisingly underperforming tech stock over the past year. In 2024, it declined by 18% even despite its promising growth opportunities as a top artificial intelligence (AI) chip maker.

According to data by Jon Peddie Research, Nvidia now holds a 90% share in the GPU market, while AMD accounts for roughly 10%. Related: Analyst overhauls AMD stock price target as