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“AMD Faces Decline as Wall Street Raises Concerns Over Increasing AI Chip Disparity with Nvidia“ ‼️‼️

Advanced Micro Devices (AMD) saw its stock price tumble almost 4% on Thursday morning following a downgrade by a Wall Street analyst. Jefferies' Blayne Curtis lowered his rating on AMD from "buy" to "hold" and reduced the price target from $135 to $120, suggesting a potential 12% increase from the current level. Curtis pointed to the widening gap between AMD and its rival Nvidia, particularly in the realm of artificial intelligence chips.

According to Curtis' proprietary tests, Nvidia's H200 AI chip outperforms AMD's MI300x across various open-source models, despite AMD's chip having superior theoretical performance and memory bandwidth. The situation may worsen for AMD as Nvidia is already introducing its more advanced Blackwell processors and has plans for even more powerful Rubin chips in the future.

While AMD has benefited from the AI surge, with data center revenue soaring 69% to a record $3.9 billion in the last quarter, the company faces increasing competition. In addition to Nvidia, Intel is undergoing strategic changes under new management, and AI firms are developing their own custom chips. Over the past year, AMD's stock has declined by 41%.