Another analyst is casting doubt on Advanced Micro Devices Inc.’s growth potential in graphics processing units, leading to the latest downgrade of the semiconductor stock. Wolfe Research’s Chris Caso cut his rating on AMD shares AMD to peer perform from outperform on Thursday, reflecting more muted expectations for GPU revenue this year.

Analysts from Wolfe Research, Goldman Sachs, and HSBC downgrade AMD, citing weak AI chip demand and rising competition. Could the MI350 chip spark a turnaround?

Advanced Micro Devices stock had a terrible run on the market in 2024, losing almost 21% of its value, while the broader PHLX Semiconductor Sector index clocked healthy gains of 24% during this period.

Advanced Micro Devices (NASDAQ:AMD) bears have been feasting over the past year with the stock shown to be a big laggard. In 2024, AMD declined by