AMD Downgraded on Competition, China Worries

Larry Ramer

Tue, Apr 8, 2025, 8:20 AM 2 min read

KeyBanc precocious chopped its standing connected AMD (AMD) to Sector Weight from Overweight, Schwab Network reported today. As reasons for the downgrade, the slope cited pugnacious contention and worries astir AMD's China business.

A adjacent up of a analyzable looking PCB committee with respective intergrated semiconductor parts.

Intense Competition

KeyBanc is acrophobic that AMD volition autumn further down Nvidia (NVDA) and suffer crushed to Intel (INTC). As a result, the slope is disquieted astir AMD's gross outlook.

Moreover, a terms warfare could make successful the spot sector, with AMD being forced to chopped prices aft INTC already took the second step, the slope stated.

AMD's China Business Is Facing Steep Risks

And successful the aftermath of the commercialized warfare betwixt the U.S. and China, on with already existing restrictions connected the export of precocious chips to the Asian country, AMD's gross from China could decline, KeyBanc believes.

Importantly, the gross that AMD obtains from selling AI GPUs extracurricular of China is expected to summation precise small this year, KeyBanc warned.

The Recent Price Action of AMD Stock

In the past month, the shares person mislaid 10%, portion they are down 32% successful the past 3 months.

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