Bank of America downgrades AMD due to potential market share losses

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Advanced Micro Devices Inc Notícia

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Advanced Micro Devices could lose market share as cloud customers increasingly prefer custom chips, Bank of America said.

Increasing competitive pressures will begin weighing down shares of Advanced Micro Devices , according to Bank of America. Analyst Vivek Arya downgraded the semiconductor stock to neutral from buy and cut his price target to $155 from $180. The new forecast is still 11% above where shares closed on Friday.

"AMD does have a strong presence at Microsoft, Meta and Oracle, but their capex requirements for NVDA's premium Blackwell could also limit share gain opportunity for AMD MI products. ... , we continue to see NVDA at 80%+ accelerator share, custom chips 10-15%, with remaining shared by AMD and range of start-ups." As a result of these headwinds, Arya lowered his 2025 AI GPU forecast for the company to $8 billion from $8.

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