AMD Stock Target Falls, Is AMD Out of the AI Race in 2025?

Advanced Micro Devices (AMD) is striving to catch up with Nvidia in the AI technology race this year, but recent developments suggest it may be heading in the wrong direction. A new price target for AMD stock is lower than expectations from late 2024, with analysts labeling the stock as 'overweight.' Despite being a leading tech stock in the artificial intelligence sector, AMD has had a challenging start to the year, with its stock down 2% year-to-date and nearly 6% this week. Although there has been a slight recovery in the last 24 hours, AMD still has a long way to go to catch up with its rival Nvidia. In 2024, AMD shares dropped about 18% as the company struggled to meet investor expectations, while Nvidia's stock surged over 100%. Other competitors like Broadcom and Marvell Technology also saw significant gains, rallying 108% and 83%, respectively.