AMD’s AI Ambitions Face Market Reality Check

The artificial intelligence enthusiasm surrounding Advanced Micro Devices (AMD) is showing significant cracks. Recent developments suggest the sustainability of the AI boom may be more fragile than previously believed, causing investors to reassess the semiconductor company’s position as NVIDIA’s primary challenger.

Seaport Research Partners delivered a sobering assessment by downgrading AMD from “Buy” to “Neutral.” Their analysis points to concerning signals within the supply chain indicating a substantial cooling in the AI accelerator segment. Market strategist Jay Goldberg highlighted what he considers “overly optimistic expectations” for 2025, expressing skepticism that initial customer commitments will translate into substantial volume orders.

The situation appears particularly concerning with key clients. Both Microsoft and Meta Platforms, previously considered major adopters of Read more...