AMD Stock Faces Major Setback Amid AI Struggles, Jefferies Downgrade

AMD shares plunged 3.4% in premarket trading after Jefferies analyst Blayne Curtis downgraded the stock from Buy to Hold. Curtis cut the price target from $135 to $120, citing concerns over AMD’s performance in the artificial intelligence (AI) market. This downgrade follows a proprietary benchmarking report that highlighted critical gaps in AMD’s MI300x GPU compared to Nvidia's H200, especially in real-world AI workloads. Although the MI300x boasts impressive theoretical specifications, it struggles to match Nvidia’s established software ecosystem, particularly its CUDA platform, which is optimized for AI tasks. Curtis emphasized that AMD’s ROCm platform is still in its early stages and lacks the maturity and widespread adoption of Nvidia’s tools, limiting its AI capabilities. Furthermore, rising competition from Intel, with its growing presence in the AI GPU market, adds additional pressure on AMD’s position. As investors recalibrate their expectations, the question remains whether AMD can recover or if its ambitions in AI are permanently compromised.
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AMD Stock Crashes: Is the AI Dream Over?