AMD could be in trouble, according to Jefferies. The firm downgraded the chipmaker to hold from buy. Its new price target of $120, down from $135, implies shares adding just 8.9% from Wednesday’s close. Analyst Blayne Curtis cited intensifying competition from Intel as well as results from a Jefferies benchmarking study that indicate AMD’s graphics processing units significantly underperformed Nvidia’s throughout various open-source models. Intel’s incoming CEO will likely make the company more flexible on strategy that will result in the company producing “fairly competitive chips” starting next year, according to Curtis making the company more competitive versus AMD. AMD YTD mountain AMD in 2025 “When we assumed coverage of AMD back in May 2024, we saw continued share gains in PC/Server but had some concerns on the AI ramp and wanted to see more progress to justify a continued positive stance. Fast forward to today, we are still not seeing much traction in AI to support the $10-15B of AI revenue the street is baking in for 2026/2027 and see Intel’s new management as a catalyst for them to become more competitive, particularly in Client PC,” Curtis wrote. Shares declined more than 2% in the premarket following the downgrade. AMD has fallen around 8.8% in 2025, putting it down 38.6% over the last 12 months. “The stock has already pulled back significantly, but Street estimates still seem too high, and we see more downside risk than upside potential near-term,” Curtis said. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles, and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
