Advanced Micro Devices, Inc. (AMD) is facing significant headwinds as BofA Global Research maintains a "Neutral" rating, adjusting its price target to $135 from $155. The revision reflects a cautious outlook on AMD's AI GPU segment, now estimated at $7.5 billion for CY25E, amid increasing competition from NVIDIA and custom ASICs. Despite AMD's strong performance in the PC segment, which offset weaknesses in the data center, the company's challenges in the AI GPU market are evident. The Q4 2024 earnings report showed a 12% q/q and 24% y/y revenue increase, but the data center segment underperformed, with GPU revenue falling short of expectations.
The GraniteShares 2x Long AMD Daily ETF (AMDL) experienced a sharp decline, dropping 20.52% to $5.81 at 10:00 AM on Wednesday, February 5.