11 Trending AI News and Ratings

5. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops semiconductors, offering processors and graphics solutions for gaming, data centers, and embedded systems, with a focus on high-performance computing for AI applications.

Goldman Sachs downgraded AMD to Neutral from Buy and reduced the price target from $175 to $129. While the firm remains positive on AMD’s ability to gain market share from Intel in x86-based computing, concerns have risen over the impact of Arm-based custom CPUs and increasing competition in accelerated computing. These factors may slow AMD’s revenue growth, increase operating expenses, and pressure its stock multiple. The firm added:

“Since being added to the Buy list on 11/04/2020, the stock is up 50% vs. the S&P 500 at +72% over the same period. We believe this underperformance stems from weakness in PC and traditional end-demand, as well as slower-than-expected growth in Data Center GPUs.

We now expect the stock to remain range-bound until the market regains confidence in AMD’s future growth and margin trajectory.”