AMD stock falls after downgrade from BofA citing risks of competition

What you need to know

• Bank of America lowered the price target and downgraded Advanced Micro Devices stock on Monday, warning of potential downside risks in 2025 for the chipmaker.
• The bank dropped its rating to "neutral" from "buy" and lowered its price target to $155 from $180.
• Analysts said AMD is facing increasing competition from Nvidia for AI chips, as well as a growing preference from customers for Marvell Technology’s and Broadcom’s cloud-custom chips.

Bank of America lowered the price target and downgraded Advanced Micro Devices’ (AMD) stock on Monday, warning of the downside risk for the chipmaker by 2025.

The stock was downgraded by the bank to “neutral” The following is a list of the most recent and relevant articles. “buy,” Its price target was cut to $155 instead of $180.

Analysts pointed out in a memo to clients on Monday that Nvidia is stepping up its competition for Artificial Intelligence (AI) chips. “growing cloud preference for custom chips” Marvell Technology, Broadcom and Broadcom (AVGO) could all limit AMD’s ability to gain market share.

Expecting a slowdown in the demand for PC processors

Analysts expressed concern about the potential for a slowdown in PC processor demand in the first quarter of 2013 after this year’s surge in second half.

AMD, however, could increase its share of the CPU market as Intel undergoes an upcoming restructuring. It would also be benefiting from Nvidia AI’s supply issues. 

Advanced Micro Devices stock fell over 5% to $130.87 on Monday. It has lost around 11% this year.

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