Back to today’s briefing

Story perspectives

AMD Downgraded Amid Competition Fears, Price Target Cut

1/30/2025

45 3

Summary

Story summary

Melius Research's Ben Reitzes has downgraded AMD from Buy to Hold, slashing the price target from $160 to $129. Fears of fierce competition from Nvidia and lackluster MI300 sales for 2025 have prompted a dip in revenue and earnings projections. Currently, AMD's stock is down 0.74%, trading at $114.15 amid tough market conditions.

History

Historical Context

AMD's downgrade by Melius Research reflects a historical pattern of fierce competition in the semiconductor industry. Similar to Nvidia's rise post-2000 after acquiring 3dfx, AMD faces pressure from Nvidia's advancements, particularly in AI and gaming GPUs, impacting its revenue and market positioning.

1 of 2

Story summary

Melius Research's Ben Reitzes has downgraded AMD from Buy to Hold, slashing the price target from $160 to $129. Fears of fierce competition from Nvidia and lackluster MI300 sales for 2025 have prompted a dip in revenue and earnings projections. Currently, AMD's stock is down 0.74%, trading at $114.15 amid tough market conditions.

1 / 2