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Advanced Micro Devices: AI Struggles Amid Stock Gains

Advanced Micro Devices: AI Struggles Amid Stock Gains

Advanced Micro Devices ( (AMD) ) has been popular among investors this week. Here is a recap of the key news on this stock.

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Advanced Micro Devices (AMD) has experienced a mixed performance in the stock market recently. Despite a 25% gain in 2025, the company faced a downgrade from Seaport Global Securities analyst Jay Goldberg, who cited slower-than-expected progress in AMD’s AI accelerator business. Goldberg noted that AMD is struggling to secure large orders from major clients like Microsoft and Meta, who are reviewing their AI budgets. Additionally, AMD’s reliance on discounts and support programs to drive adoption could pressure its margins.

However, AMD’s long-term outlook remains promising, with analysts maintaining a cautiously optimistic stance. The company has shown resilience, with its stock up 26.61% year-to-date, despite economic pressures like inflation and trade restrictions. While AMD faces competition from Nvidia and now Broadcom in the AI space, it has made strides in the consumer GPU and CPU sectors, which could support financial growth. Wall Street’s consensus rating for AMD is a Moderate Buy, with a potential upside of 14.29% from current levels.

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