AMD Stock Slumps After Double Downgrade by HSBC on AI Revenue Concerns

Stock Performance and Analyst Downgrade - Advanced Micro Devices (AMD) shares tumbled more than 4% intraday to $121 60 after HSBC analysts double downgraded the stock from "buy" to "reduce" [2][3] - AMD shares have lost about 24% of their value over the past three months leading up to Wednesday [3] - HSBC analysts believe "there remains further downside" for AMD shares [3] AI Chip Revenue and Competitive Landscape - HSBC lowered its fiscal 2025 AI GPU revenue forecast for AMD to $8 1 billion from $12 3 billion well below the $9 5 billion analyst consensus [5] - AMD's AI chip roadmap was described as "less competitive" than previously anticipated with soft demand for its MI325 GPU [4] - The upcoming MI350 chip from AMD is expected to struggle competing with Nvidia's offerings [4] Earnings and Market Expectations - AMD is expected to report 2024 fourth-quarter earnings in late January or early February based on last year's timing [5] - HSBC also lowered AMD's price target to $110 from $200 reflecting reduced confidence in the company's AI chip prospects [3]