In his technological skills, Advanced Micro Devices Inc. continues to fall behind Nvidia Corp., a incontrovertible fact that could proceed to place the stock under pressure, says Jefferies, who downgraded the chipmaker to carry.
“AMD has considerable properties before their products can compete,” wrote analyst Blayne Curtis, who previously had a business rating for the stock. The Nvidia chips have a “significant performance advantage” in comparison with AMDS, and this gap should expand further with the upcoming product cycles of Nvidia, an indication of AMD's “Limited Traction in AI”.
The shares fell by 3.6% on Thursday and declined by about 50% a couple of 12 months ago. However, the decline of 12% from 12 months to 12 months is milder than the Nvidia decline of 17%.
Even with the break-in of the AMD shares, Jefferies wrote: “Street estimates still seem to be too high, and we see more down risk than upside down at short notice.”
In his recent results, AMD gave a disappointing view for his data center business, an indication of how difficulties can meet up with Nvidia. Including Jefferies, at the least eight corporations have reduced their view of AMD this 12 months. Some, including HSBC and Melius, have cited the issue of competition with Nvidia.
Jefferies reduced its price for the share of $ 135 to $ 120 and set the bottom destinations of the analysts pursued by Bloomberg. The average goal is about $ 145; AMD last closed with $ 110.19.
Nvidia is by far the biggest player for chips utilized in the processing of artificial intelligence. According to IDC, this is applicable, which undergo the third quarter of last 12 months, about 89% of the worldwide server GPU units. In contrast, AMD has a market share of 10.3%, with Intel Corp. at 1.1%.
While Intel is nice on the last place, aggressive changes from the unique industry leader point to a possible “lighter future”, Curtis wrote and added that “expectations of the increasing competition of Intel” might be a further risk for AMD.
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