Advanced Micro Devices (AMD) stock has gotten a forecast downgrade from analysts at Jeffries, a dramatic change of tone from earlier analysis. AMD is currently trading near the bottom of its 52-week range and below its 200-day simple moving average. Jeffries analysts point this out in their latest investment letter and have lowered their projection of AMD down to $120, as well as downgraded the stock to a hold.

AMD stock has experienced significant volatility, declining nearly 33% over the past six months. In the last month alone, shares are up 7%, but Jeffries is still bearish. Jefferies cited the competitive landscape as a contributing factor to their revised outlook. They noted that the new management at Intel (INTC) could catalyze the company to enhance its competitive edge, adding even stronger competition to AMD.

Additionally, despite initial optimism when Jefferies assumed coverage in May 2024, the firm has not observed significant progress in AMD’s AI segment. This lack of traction challenges the optimistic revenue projections of $10-15 billion for AMD in the AI space in 2026 and 2027.

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Jeffries Suggests To Hold Onto AMD, Not Sell

Furthermore, Jefferies suggests a wait-and-see attitude for investing in AMD stock. The firm recommends holding off on buying AMD until there is a clearer understanding of the company’s progress in AI. As that sector continues to thrive in 2025, competition is growing. Even non-traditional AI companies like Apple (AAPL), Alphabet (GOOGL), and Amazon (AMZN) are becoming more competitive in AI. With Intel and Nvidia already being hefty rivals, it leaves little room for error for Advanced Micro Devices (AMD).

Hence, Jeffries cautions playing it safe before investing in AMD stock, which may send shares further down. This caution has brought downward momentum for the company’s shares. Analysts at the major firms are also bearish on the stock. Mizuho Securities has reduced its price target for AMD from $140 to $120.

On the contrary, JPMorgan reiterates a Neutral rating for AMD with a $130 price target, expressing confidence in AMD’s growth prospects. Out of 55 analysts surveyed by CNN, 69% also still suggest buying AMD stock, while 29% suggest holding on.