Should You Buy or Sell This Nvidia Rival? Analysts Weigh In As Technicals Signal A Downtrend

Stock Performance and Technical Analysis - The stock closed at $126.29 on Tuesday, above its eight-day simple moving average of $123.48 but below its 20-day ($130.77), 50-day ($140.38), and 200-day ($154.50) moving averages, indicating a bearish trend [1][4] - The relative strength index of 40.31 suggests the stock's movement is neutral, not yet in an overbought or oversold zone [8] - Shares of AMD were down 0.24% at $125.99 in premarket on Thursday and down 8.87% year-to-date, underperforming the Nasdaq 100, which rose by 31.76% this year [11] Market Position and Growth Prospects - AMD's 2024 performance was mixed, with strong data center growth driven by new GPUs gaining share against Nvidia's H100 due to availability and pricing advantages, but gaming and embedded segments decelerated, impacting overall growth [2] - AMD is expected to hold a small 4% of the $200 billion AI accelerator market in 2025, significantly trailing Nvidia's dominant 80%+ share [3] - AMD is one of Rosenblatt's top picks for the first half of 2025 due to momentum in CPU and GPU share gains and a broader non-AI recovery exiting 2025, with potential for double-digit market share in GPU compute and AI inference at the edge [10] Analyst Ratings and Price Targets - The lowest price target was a downgrade from 'buy' to 'neutral' by BofA Securities, adjusted to $155 from $180 per share on Dec 9 [3] - The highest price target is $265 issued by Melius Research with a 'buy' rating on March 8, as AMD is seen mirroring Nvidia's past success [5] - AMD has a consensus 'buy' rating with an average price target of $195.07 based on the ratings of 30 analysts [9] - The average price target of $164.33 between Morgan Stanley, BofA Securities, and Mizuho implies a 30.81% upside for Nvidia [6]