Goldman Sachs has downgraded its rating for Advanced Micro Devices (AMD) from ‘Neutral’ to ‘Sell’ as the company’s stock struggles amidst a broader market slowdown. This shift comes as analysts express concerns about AMD’s competitiveness in the artificial intelligence (AI) chip sector. The stock was quoted at $96.75 but is seen sagging to a target price of $78, indicating a significant downside potential. According to Goldman Sachs analyst Toshiya Hari, the likelihood of AMD gaining substantial market share in AI chips is low. Hari stated, “Given the competitive landscape and AMD’s current valuation, we believe further downside is likely.” This announcement has been met with skepticism among investors, particularly as AMD continues to enhance its product lineup. For context, AMD’s shares have declined more than 25% in the last three months, reflecting broader trends in the semiconductor industry.
Goldman Sachs Downgrades AMD Following AI Chip Market Concerns
