Analyst Downgrades AMD Stock Amid Weak AI Momentum

Advanced Micro Devices (AMD) shares have surged 34% year-to-date in 2025, but Seaport Global Securities analyst Jay Goldberg has downgraded the stock to Neutral from Buy. The MOVE follows weaker-than-expected progress in AMD's AI accelerator business, with supply chain checks indicating sluggish order growth for its MI Series chips.

Early adopters have largely limited purchases to trial systems, with meaningful volume orders unlikely until next-generation products launch. Microsoft and Meta—key AMD customers—are reevaluating AI budgets, potentially constraining near-term chip demand. The company's reliance on discounts and support programs to drive adoption may further pressure margins.

While long-term prospects remain intact, the AI slowdown presents immediate headwinds. AMD's challenge mirrors broader semiconductor sector volatility as enterprises recalibrate AI infrastructure spending after 2024's aggressive deployments.