Wall Street Grows Wary of AMD’s AI Ambitions

AMD US0079031078

A significant shift in sentiment is underway among financial analysts covering Advanced Micro Devices. Once celebrated as a primary challenger to Nvidia in the explosive artificial intelligence chip sector, AMD now faces a wave of downgrades and sharply reduced price targets, casting doubt on its competitive standing.

The reassessment of AMD’s prospects began in December 2024 and has intensified into the new year. On December 9, Bank of America set the tone by demoting the stock from “Buy” to “Neutral.” Analyst Vivek Arya simultaneously slashed the price objective from $180 to $155, citing intensified competitive pressures and a limited potential for AMD to capture meaningful market share from Nvidia’s AI dominance.