Bank of America downgraded AMD's stock to 'neutral,' highlighting increased competitive risks in the AI market amid concerns about demand for AMD's AI chips.
The BofA analyst note expressed that due to lower-than-expected demand from Amazon Web Services and Nvidia's market dominance, AMD's growth potential looks limited.
Despite challenges, Bank of America noted that AMD retains a chance for success in the AI chip sector, particularly due to Nvidia's supply issues and premium pricing.
AMD's GPU sales forecast was downgraded from $8.9 billion to $8 billion, reflecting an anticipated market share of about 4%, complicating its position in a competitive market.
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