AMD Stock Falls After Downgrade From BofA, Citing Risks From Competition

Shares of Advanced Micro Devices (AMD) fell Monday after Bank of America downgraded the stock and lowered its price target, warning of downside risks for the chipmaker in 2025.

The bank downgraded the stock to “neutral” from “buy,” and cut its price target to $155 from $180.

In a note to clients Monday, the analysts pointed to increased competition from Nvidia (NVDA) for artificial intelligence (AI) semiconductors, and “growing cloud preference for custom chips” from Marvell Technology (MRVL) and Broadcom (AVGO), which could limit AMD’s potential market-share gains.

Anticipating a Slowdown in Demand for PC Processors

The analysts also expressed concerns about a potential slowdown in demand for PC processors in the first half of next year after a jump in this year’s second half.

However, they noted AMD could expand its position in the central processing unit (CPU) market as Intel (INTC) undergoes a likely restructuring, while also benefiting from Nvidia AI chip supply constraints. 

Advanced Micro Devices shares fell more than 5% Monday to close at $130.87, and have lost about 11% of their value this year.