AMD down after Jefferies cuts to 'hold' on limited AI traction, rising competition

Shares of chipmaker Advanced Micro Devices AMD.O fall 2.74% to $107.17 premarket after Jefferies downgrades to "hold" from "buy"

Brokerage believes AMD's traction in AI is limited and sees increased competition from Intel INTC.O

Earlier this month, TSMC 2330.TW pitched AMD and other chipmakers about taking stakes in a joint venture that would operate INTC's factories, according to four sources familiar with matter

Brokerage says NVIDIA's NVDA.O H200 chip outperforming AMD's MI300x AI chip in real-world tests as per its proprietary data; expects similar performance gap to Nvidia's flagship Blackwell and Rubin chips

Jefferies trims AMD PT to $120 from $135

Analysts' average rating is equivalent of "buy"; median PT is $140 - data compiled by LSEG

Stock down ~8.7% YTD vs ~14% decrease in S&P 500 semiconductors index .SPLRCELCS