Advanced Micro Devices (AMD) is facing significant headwinds today, driven by a series of downgrades and lowered price targets from major financial institutions. Goldman Sachs downgraded AMD from a "buy" to a "neutral" rating, citing increased competition from Arm-based CPUs and slower-than-expected growth in data center GPUs. The bank also slashed its price target from $175 to $129, reflecting concerns over AMD's ability to maintain its market share and growth trajectory. This downgrade follows a similar move by HSBC, which reduced its target price for AMD to $110, highlighting challenges in AMD's AI GPU roadmap and its competitive positioning against peers like Nvidia.
The semiconductor sector, represented by the SOX index, is also under pressure, with a decline of 2.54% as of 10:00 AM on January 10, 2025. This broader market sentiment is compounded by President Biden's plans to further restrict AI chip exports from companies like AMD and Nvidia, adding to the uncertainty surrounding AMD's future growth prospects. The combination of these factors is contributing to a bearish outlook for AMD, as analysts express concerns over its competitive landscape and the potential impact on its financial performance.
The GraniteShares 2x Long AMD Daily ETF (AMDL) has dropped to $6.89, reflecting a 10.87% decrease from the previous close.