AMD Stock Slumps as Analysts Cut Price Targets After Data Center Revenue Misses Estimates | Global News Avenue

Advanced micro -equipment (AMD) Stocks plummeted Wednesday, with several analysts lowering their price targets after chipmaker data center sales Missed expectations.

Bank of America analysts said AMD “has not yet (not yet) articulated how it is with Nvidia’s” (NVDA) Dominant position AI Chips. The bank lowered its price target from $155 to $135 and lowered its revenue estimate for AMD GPUs in 2025.

Chipmakers did not provide AI revenue forecasts, but Citi analysts expect AMD’s AI revenue could remain flat in the first half of 2025, or even decline year-on-year, which analysts said would be “below the peers.” Citi lowered AMD from “buy” to “neutral” and reduced its target from $175 to $110.

Analysts at Mizuho, ​​Jefferies and UBS also lowered their price targets.

AMD’s shares fell 7% on Wednesday to $111.12. The stock has lost more than a third of its value in the past 12 months due to concerns about its AI revenue and the ability of chipmakers to compete with NVIDIA.

But Wedbush analysts called the sell-off “over-excessive”, which shows the strength of the company’s customers’ CPU segment.

Analysts say the chipmaker’s customer segment has higher revenue than expected, including chips from desktops. Wedbush added that AMD can be prepared to gain market share from rival Intel (INTC) in the PC chip market.