AMD Stock Dips Amid Analyst Downgrade and Competitive Concerns

Bank of America analyst Vivek Arya has downgraded AMD's stock from Buy to Neutral, citing a revised AI GPU revenue forecast for 2025 from $8.9 billion to $8 billion, below the consensus of $9.6 billion. Arya highlights AMD's lagging pipeline compared to Nvidia and challenges from major cloud customers like Amazon and Google. Despite potential in the compute market and as a GPU alternative, Arya's price target for AMD is reduced from $180 to $155, though the stock still holds a Moderate Buy consensus with a potential 42% upside.