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Advanced Micro Devices (AMD) is back in the investor spotlight after Jefferies downgraded the chipmaker from “Buy” to “Hold,” slashing its price target to $120. Analyst Blayne Curtis cited AMD’s widening performance gap with Nvidia (NVDA) and its “limited traction in AI,” warning that Street estimates remain too high. The note adds to a wave of recent downgrades, including cuts from HSBC and Melius, all of which point to tough competition ahead.
The downgrade comes as AMD shares decline 16.4% in the year to date. While that’s a milder drop than Nvidia’s 21% YTD loss, the timing couldn’t be more sensitive. AMD is trying to ramp up its MI300 accelerators to close the gap with Nvidia’s dominance in AI infrastructure, but delays and execution risks persist.
