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Bank of America downgrades AMD due to potential market share losses

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Advanced Micro Devices Inc News

Stock Markets,Investment Strategy,Business News

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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