AMD Stock Hits Over One-Year Low Amid Rising Competition, Analyst Downgrades: Retail Loses Patience

Advanced Micro Devices Inc. (AMD) tumbled over 3% as markets opened on Friday to hit a one-year low after a downgrade from Goldman Sachs, citing growing concerns over competitive pressures and changing market dynamics.

The chipmaker’s stock has reached its lowest level since December 2023.

After HSBC’s double downgrade on Wednesday, Goldman Sachs has now revised its rating to ‘Neutral’ from ‘Buy’ and slashed its price target to $129, down from $175, according to TheFly.

Mizuho also lowered its price target to $160 from $180, maintaining an ‘Outperform’ rating on the shares on Friday.

Goldman’s note highlights potential headwinds for AMD, including the rising adoption of Arm-based (ARM) custom CPUs and intensifying competition in accelerated computing, which could challenge AMD’s growth prospects compared to peers. 

The brokerage expressed concerns that these challenges will increase AMD's spending, which could weigh on its valuation. 

Goldman suggested the stock might remain range-bound until the market regains confidence in its growth and margin outlook.

Retail sentiment around AMD’s shares on Stocktwits continued to be ‘bearish’ early on Friday, while retail chatter simmered to ‘normal’ from ‘high’ levels a day ago. 

One user noted that AMD's current valuation still appears stretched despite the recent decline, while another pointed to factors beyond analyst downgrades as contributing to the stock’s slump.

AMD’s stock has fallen more than 13% over the past year, reflecting growing concerns about the company’s competitive positioning in the semiconductor market.

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