AMD Stock Slumps After Double Downgrade by HSBC on AI Revenue Concerns [Video]

Advanced Micro Devices (AMD) shares tumbled Wednesday after HSBC analysts gave the stock a double downgrade, citing concerns about the chipmaker’s artificial intelligence (AI) revenue.

HSBC dropped AMD’s rating two levels, to “reduce” from “buy,” and lowered its price target to $110 from $200. The AI chip company’s shares have lost about 24% over the past three months going into Wednesday, with the analysts adding they believe “there remains further downside.” AMD shares slid more than 4% intraday to $121.60. 

The analysts called AMD’s AI chip roadmap “less competitive” than previously anticipated, pointing to soft demand for its MI325 graphics processing unit (GPU). A new MI350 chip is expected from AMD later this year, but the analysts added it could struggle to compete with AI chipmaking titan Nvidia’s (NVDA) offerings. 

HSBC lowered its fiscal 2025 AI GPU revenueforecast for AMD to $8.1 billion from $12.3 billion, well below the $9.5 billion analyst …