Advanced Micro Devices (AMD) saw its stock plummet after a downgrade from five-star analyst Toshiya Hari at Goldman Sachs. The firm dropped its Buy rating to Neutral, cutting the price target from $175 to $125 per share. Despite this, the new target still offers 12.11% upside potential for AMD shares over the next year.
The main concern behind the downgrade is competition from rival Arm, which has been attracting customers with custom central processing units. Additionally, the analyst worries about increasing competitiveness in the accelerated computing market.
However, Hari does offer some positives for AMD, including its expected share of the x86-based compute market from Intel. The company’s PC and server products are seen as a key driver of growth.
The recent December Jobs Report also had an impact on AMD stock, with many tech stocks falling due to reduced expectations for interest rate cuts in 2025. This has made investors question whether AMD is still a good buy.
Analysts’ consensus rating remains Moderate Buy, based on 23 Buy, nine Hold, and one Sell ratings over the last three months. The average price target stands at $179.84, with forecasts ranging from $110 to $250.
Source: https://www.tipranks.com/news/goldman-sachs-downgrade-wallops-amd-stock