AMD Stock Slumps After Double Downgrade by HSBC on AI Revenue Concerns | Global News Avenue

AMD Semiconductor Corporation (AMDThe stock tumbled on Wednesday after analysts at HSBC double downgraded the stock, citing concerns about the chipmaker. Artificial Intelligence (AI) income.

HSBC downgraded AMD’s rating by two notches from “buy” and lowered its price target to $110 from $200. Shares of the artificial intelligence chip company had fallen about 24% in the past three months through Wednesday, with analysts adding that they believed there was “further room to fall.” AMD shares fell more than 4% intraday to $121.60.

Analysts say AMD’s AI chip plans are ‘less competitive than expected’

Analysts call AMD’s AI chip roadmap “less competitive than previously expected” and point to weak demand for its MI325 Graphics processing unit (GPU). AMD is expected to launch a new MI350 chip later this year, but analysts added that the chip may struggle to compete with AI chipmaking giant Nvidia.NVDA) dedication.

HSBC lowers AI GPU scale for fiscal year 2025 income AMD’s revenue forecast was lowered to $8.1 billion from $12.3 billion, well below analysts’ expectations of $9.5 billion. AMD is expected to announce its fourth-quarter 2024 financial report at the end of January or early February, depending on the timing of last year’s results release.