AMD Stock Slumps as Analysts Cut Price Targets After Data Center Revenue Misses Estimates

Advanced Micro Devices (AMD) shares plunged Wednesday and several analysts dropped their price targets after the chipmaker’s data center sales missed expectations. 

Bank of America analysts said AMD “has not (yet) managed to articulate how it can carve an important niche” relative to Nvidia’s (NVDA) dominance in artificial intelligence chips. The bank cut its price target to $135 from $155 and lowered its 2025 revenue estimate for AMD’s GPUs.

The chipmaker did not provide an AI revenue forecast, but Citi analysts projected AMD’s AI revenue could remain flat or even decline year-over-year in the first half of 2025, which analysts said would be “well below peers.” Citi downgraded AMD to “neutral” from “buy” and dropped its price target to $110 from $175. 

Analysts at Mizuho, Jefferies, and UBS also lowered their price targets.

Shares of AMD fell 7% intraday Wednesday to $111.12. The stock has lost more than a third of its value over the past 12 months amid concerns about its AI revenue and the chipmaker’s ability to compete with Nvidia.

However, Wedbush analysts called the selloff “overdone,” pointing to the strength of the company’s client CPU segment.

The chipmaker got “nearly zero credit” for higher-than-expected revenue from its client segment, which includes chips for desktops, the analysts said. Wedbush added that AMD could be poised to take market share from rival Intel (INTC) in the PC chip market.