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Wolfe Research moved to the sidelines on Advanced Micro Devices as one key business area flashes warning signs. Analyst Chris Caso downgraded the semiconductor stock to peer perform from outperform. Caso also removed his price target after most recently setting it at $210. Caso’s call was driven by concerns that the data center graphics processing unit business is tracking for lower revenue than previously forecasted. Wolfe said to expect $7 billion in 2025, down from prior estimates of at least $10 billion. “We were early in noting that AMD’s datacenter GPU business is running below expectations,” Caso wrote clients on Thursday. “Our rating is now catching up to that view.” He also said AMD likely won’t provide 2025 guidance for that business on its fourth-quarter earnings call. More broadly, Caso said AMD has a “difficult” setup into its earnings report slated for early next month. Caso’s downgrade broke with the Wall Street consensus, as most analysts polled by LSEG have buy-equivalent ratings on the stock. The average price target implies shares can soar more than 45% over the next year. AMD shares have pulled back modestly in 2025, extending 2024’s drop of around 18%. AMD 1Y mountain AMD, 1-year
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