Main to remember
- AMD shares fell on Thursday while the stock of chip maker was demoted by Jefferies analysts.
- Analysts said they expect the performance gap between the latest AMD products and the Nvidia widen.
- AMD shares have lost more than 40% of their value in the past 12 months.
Micro advanced devices (Dmla) Actions lost ground on Thursday while Jefferies analysts had lowered the stock, saying that they are expecting performance between the last AMD and Nvidia products (that of Nvidia (Nvda) to widen.
Analysts lowered AMD shares to a “conservation” and reduced their price target to $ 120, down compared to a note “buy” and $ 135 target before. This is much lower than the average objective of $ 139 of analysts followed by Visible Alpha, five of which issued “hold” notations, compared to seven “buy” and a “sell” rating.
AMD shares have dropped by almost 4% almost $ 106 during recent negotiations on Thursday and lost more than 40% of their value in the past 12 months.
Jefferies highlights “Nvidia’s significant performance of Nvidia”
Quoting performance tests carried out with three open source Artificial Intelligence (AI) Models in recent weeks, Jefferies has written that the H200 of Nvidia Graphic processing unit (GPU) Always has a “significant performance advantage” on the MI300X of AMD, and that they expect the gap can “develop further” with the Rubin and Blackwell lines of Nvidia.
The NVIDIA GPU “has outperformed the DMLA by a large margin” in most tests of analysts. Although AMD’s product has advantages announced as a higher memory bandwidth, they “do not lead to higher performance in the real world,” analysts wrote.
They also said “the expectations of the growing competition” of Intel (Intruder) has contributed to degradation, because they believe that Intel could have “fairly competitive tokens” by next year Under his new CEO.