Advanced Micro Devices (AMD) stock has gained about 25% so far in 2025. In a recent report, Seaport Global Securities analyst Jay Goldberg downgraded AMD to Neutral from Buy, citing weaker-than-expected progress in the company’s AI business.
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Why the Analyst Downgraded AMD Stock
Goldberg said recent supply chain checks suggest that AMD’s AI accelerator business is moving slower than expected. He explained that AMD is struggling to grow orders from many of the customers it announced at its AI event earlier this year.
According to Goldberg, most of these companies have only purchased trial systems for AMD’s MI Series accelerators. He does not expect these early sales to turn into large orders until a future generation of products is ready.
The analyst also raised concerns about AMD’s ties with major customers like Microsoft (MSFT) and Meta (META). He said both companies are reviewing their AI budgets, which could limit near-term orders for AMD chips.
In addition, Goldberg noted that AMD has leaned more heavily on discounts and support programs to drive adoption. He warned that this strategy, along with weaker demand visibility, could put pressure on margins.
Long-Term Outlook Remains Strong
While Goldberg said AMD is still a strong long-term player in the AI chip market, he cautioned that meaningful market share gains are still several years away. For now, he believes the stock’s upside will remain limited in the near term.
Is AMD Stock a Buy or Sell Now?
Overall, Wall Street is cautiously optimistic on Advanced Micro Devices stock, with a Moderate Buy consensus rating based on 26 Buys and 11 Holds. The average AMD stock price target of $184.91 indicates 14.29% upside potential from current levels.
