BofA Downgrades AMD, Citing PC Slowdown and AI Competition

Bank of America (BofA) has downgraded AMD's stock from Buy to Neutral, lowering the price target from $180 to $155. BofA anticipates a broadening AI chip market will increase demand for competitors like Marvell and Broadcom, limiting AMD's market share growth. Increased AI Competition BofA acknowledges AMD's unique position, competing with Intel in the x86 CPU market and NVIDIA in the GPU market. While AMD benefits from Intel's weaknesses and the growing AI market, BofA believes the expanding AI GPU landscape, with players like Marvell and Broadcom emerging, will create significant competition. Marvell, in particular, is aggressively pursuing custom AI processor projects, including partnerships with major clients. Broadcom is also reportedly working with OpenAI on custom AI GPUs to reduce their dependence on NVIDIA. Cloud providers like Amazon are developing their own custom AI chips, and Google already utilizes its Tensor Processing Units (TPUs). These trends, coupled wit…