Stocks and Investing
Stocks and Investing
Why Advanced Micro Devices Stock Was Double-Downgraded
- HSBC lowered its rating on Advanced Micro Devices stock amid several concerns including the chipmaker's ability to compete with Nvidia. Here's what to know.
The article from Kiplinger discusses the recent double downgrade of Advanced Micro Devices (AMD) stock by analysts at Susquehanna Financial Group. Previously rated as "positive," the stock was downgraded to "neutral" with a price target reduction from $145 to $115. This downgrade was influenced by several factors including a cooling demand for PCs, which has impacted AMD's sales, and a broader market shift towards AI and data center technologies where AMD has less market share compared to competitors like Nvidia. Additionally, concerns about AMD's ability to maintain its growth trajectory in the face of economic slowdowns, potential market saturation, and competition in the CPU and GPU markets were highlighted. The downgrade reflects skepticism about AMD's near-term performance, despite its efforts to expand in data centers and AI, suggesting that investors might want to temper their expectations for the stock in the immediate future.
Read the Full Kiplinger Article at:
[ https://www.kiplinger.com/investing/stocks/why-advanced-micro-devices-amd-stock-was-double-downgraded ]
Read the Full Kiplinger Article at:
[ https://www.kiplinger.com/investing/stocks/why-advanced-micro-devices-amd-stock-was-double-downgraded ]
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