AMD Shares Face Pressure as Analyst Downgrade Triggers Sell-Off

A single research note from Seaport Research proved sufficient to send Advanced Micro Devices shares into a downward spiral this week. The firm downgraded AMD from “Buy” to “Neutral,” citing concerns about slowing momentum in the AI accelerator business. This development highlights the intense competitive pressures in the semiconductor sector, where NVIDIA continues to command overwhelming market dominance.

NVIDIA’s grip on the AI chip market remains formidable, controlling approximately 94% of the sector. Their data center revenue skyrocketed by 56% to $41 billion, dramatically outpacing AMD’s growth in this critical segment. AMD did achieve a 14% increase in data center revenue, reaching $3.2 billion, but this performance pales in comparison to NVIDIA’s explosive expansion.

The competitive environment grows increasingly challenging as established players Read more...