Daiwa Securities Downgrades AMD (AMD) to Outperform (2)

Daiwa Securities analyst Louis Miscioscia downgraded AMD (NASDAQ: AMD) from Buy (1) to Outperform (2) with a price target of $130.00 (from $170.00).

The analyst comments: "Management did suggest a strong 2H25 especially with the ramp of MI350, which was pulled into production earlier than planned in 2025 and will aid 2H revenue. MI400 to come out in 2026. The prior x86 server strength should continue both core and for the cloud. AMD has >50% share in hyper scalers. Intel on their call talked about having to be more competitive, but seemed to imply it would take some time and is not imminent, thus AMDs continued gain. Gaming is starting to come back after material inventory work down and Embedded is improving too, but still slower than expectations.

To summarize, the big issue is the material disappointment in GPUs as MI325 seems to be ramping slower than expected. For one, points to Nvidia’s dominance. However, being objective, the results are good with 24% top and 42% bottom line growth. But it’s all about vs expectations, and 1H25 was cut. Given a weak 1H, we lower our rating to 2/Outperform from prior 1/Buy."

For an analyst ratings summary and ratings history on AMD click here. For more ratings news on AMD click here.

Shares of AMD closed at $111.72 yesterday.

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