March 27 - Jefferies (JEF, Financial) has stepped back from its bullish stance on Advanced Micro Devices (AMD, Financial), downgrading the stock to "Hold" from "Buy" and trimming its price target to $120 from $135, according to a Thursday note.
The firm said AMD has yet to gain meaningful traction in the artificial intelligence space, a key reason it had been optimistic when it picked up coverage last May. Without clear signs of progress, Jefferies now doubts whether AMD can hit its ambitious AI revenue targets of $10 billion to $15 billion in 2026 and 2027.
Adding to the cautious tone, Jefferies flagged tougher competition ahead. The brokerage pointed to fresh leadership at Intel (INTC, Financial) as a possible catalyst for a stronger push in the Client PC market, a space where AMD has been battling for shares.
For now, Jefferies is taking a wait-and-see approach. Still, the firm noted that AMD remains on solid financial footing with gross margins at 53% and a healthy liquidity position.
