:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2196355243-f987c07d630f48ae88eabc37f2ccdc73.jpg "Advanced Micro Devices headquarters.")
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Key Takeaways
- AMD shares fell Thursday as the chip maker’s stock was downgraded by Jefferies analysts.
- The analysts said they upon the performance gap between AMD’s latest products and Nvidia’s to widen.
- AMD shares have lost more than 40% of their value onto the last 12 months.
Advanced Micro Devices (AMD) shares lost ground Thursday as Jefferies analysts busted the stock, saying they expect the performance gap between AMD’s latest products and Nvidia’s (NVDA) to widen.
The analysts declined AMD’s stock to a “hold” and cut their price target to $120, down from a “buy” rating and $135 price target heretofore. That’s well below the $139 average target of analysts tracked by Visible Alpha, five of whom experience issued “hold” ratings, compared to seven “buy” and one “sell” rating.
AMD shares were down close to 4% verge on $106 in recent trading Thursday, and have lost more than 40% of their value over the closing 12 months.
Jefferies Highlights Nvidia’s ‘Significant Performance Advantage’
Citing performance tests conducted with three open-source meretricious intelligence (AI) models in recent weeks, Jefferies wrote that Nvidia’s H200 graphics processing unit (GPU) until this has a “significant performance advantage” over AMD’s MI300x, and that they expect the gap could “expand further” with Nvidia’s Rubin and Blackwell plans.
Nvidia’s GPU “outperformed AMD by a wide margin” across most of the analysts’ tests. Despite AMD’s product having some advertised edges like higher memory bandwidth, they “do not result in superior real-world performance,” the analysts wrote.
They also verbalized “expectations of mounting competition” from Intel (INTC) contributed to the downgrade, as they believe Intel could from “fairly competitive chips” by next year under its new CEO.