From Financial Modeling Prep: 2025-01-08 09:02:00

AMD (NASDAQ:AMD) shares dropped over 2% pre-market as HSBC analysts downgraded the stock to Reduce from Buy, cutting the price target to $110 from $200. Concerns over AMD’s position in the AI GPU market and potential product roadmap setbacks drove the move.

Analysts cited weak demand for AMD’s new MI325 GPU and possible delays in launching a competitive AI rack solution as factors limiting the company’s ability to challenge Nvidia. This led to a significant reduction in AMD’s fiscal 2025 AI GPU revenue projections, now at $8.1 billion.

Despite a 24% decline in share price over three months, analysts foresee further downside for AMD. They expect the company’s penetration in the AI GPU market to be weaker than previously anticipated, impacting its valuation.

While AMD’s product roadmap remains on track with the MI350 chip set to launch in the second half of 2025, analysts believe competition with Nvidia’s NVL rack platform will be delayed until late 2025 or early 2026, coinciding with the anticipated launch of the MI400.



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