AMD slides as Wall Street warns of growing AI chip gap with rival Nvidia
AMD shares are down 41% over the past year.
Advanced Micro Devices shares slid nearly 4% Thursday morning after a Wall Street downgrade raised concerns about the chipmaker’s ability to keep up with rivals.
Jefferies analyst Blayne Curtis cut his rating on AMD to “hold” from “buy” on Thursday and slashed the price target to $120 from $135, implying 12% upside from current levels. He flagged the growing performance gap between AMD and Nvidia, especially when it comes to Nvidia’s powerhouse AI chip, the Hopper GPU.
“Our proprietary benchmarking shows Nvidia’s H200 outperforms AMD’s MI300x across a range of open-source models, despite AMD’s chip boasting higher advertised TFLOPs and memory bandwidth,” Curtis wrote.
Adding to concerns: Nvidia is already replacing the H200 with its more powerful Blackwell processors, with even more advanced Rubin chips on the way — potentially making it even harder for AMD to catch up.
AMD has been riding the AI boom, with data center sales surging 69% last quarter to a record $3.9 billion. But competition isn’t just coming from Nvidia; Intel is also making strategic shifts under new leadership, and AI companies are working on their own in-house chips.
AMD shares are down 41% over the past year.
