Wolfe Research's downgrade of Advanced Micro Devices (AMD) on January 16, 2025, has significantly impacted the GraniteShares 2x Long AMD Daily ETF. The downgrade from "outperform" to "peer perform" was driven by concerns over AMD's data center GPU revenue expectations for 2025. Wolfe Research highlighted that AMD is unlikely to provide guidance for this segment in its upcoming earnings call, adding to the uncertainty. This move diverges from the broader Wall Street consensus, which remains optimistic about AMD's long-term prospects, with many analysts maintaining buy-equivalent ratings.
The semiconductor sector, represented by the SOX index, showed a slight uptick of 0.54%, indicating that the broader market sentiment remains somewhat positive. However, AMD's specific challenges, particularly in the data center segment, have overshadowed this general optimism. The downgrade has led to a cautious outlook for AMD, with investors wary of the company's near-term performance, especially as it prepares for its earnings report next month.
The GraniteShares 2x Long AMD Daily ETF (AMDL) is currently trading at $7.30, reflecting a 2.21% decline from its previous close.