Key Points

- AMD stock is down 5.55% in Friday's trading
- TSMC, a major customer of Nvidia, posted record revenue growth
- Goldman Sachs downgrades AMD stock and lowers price target
- Analyst revises stance on AMD stock from Buy to Neutral
- AMD stock has underperformed in the chip sector over the past three years

Advanced Micro Devices (AMD) stock is experiencing a decline, with shares falling 5.2% as of 11:15 a.m. on Friday. CNBC's Jim Cramer highlighted the importance of keeping an eye on AMD shares, indicating potential concerns in the market. This downward trend comes amidst a "healthy trend" seen in the artificial intelligence (A.I.) space by Taiwan Semiconductor Manufacturing Company (TSMC), a key player in the industry and a major customer of Nvidia.

TSMC recently reported record revenue growth of 58% year-over-year in December, signaling positive signs for the A.I. sector. Analyst Jenny Horne noted the difficulty in finding downsides to TSMC's report, further emphasizing the optimistic outlook for the company and the industry as a whole. Despite this positive trend, AMD faced a downgrade from Goldman Sachs, which highlighted the contrast between successful companies and underperforming ones in the chip sector.

Goldman Sachs analyst Toshiya Hari revised his stance on Advanced Micro Devices (AMD), downgrading the stock from Buy to Neutral. Additionally, the price target for AMD stock was lowered from $175 to $129, reflecting concerns about the company's performance compared to its peers. Over the past three years, AMD has struggled to keep up with competitors, with shares declining by 5% while the PHLX Semiconductor Sector index has seen significant gains of 36%.

As AMD stock continues to face challenges in the market and undergoes downgrades from analysts, the future outlook for the company remains uncertain. Investors will be closely monitoring how AMD navigates these obstacles and whether the company can regain momentum in the chip sector.

About AMD

Advanced Micro Devices, Inc. operates as a semiconductor company worldwide. The company operates in two segments, Computing and Graphics; and Enterprise, Embedded and Semi-Custom. Its products include x86 microprocessors as an accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services; and server and embedded processors, and semi-custom System-on-Chip (SoC) products, development services, and technology for game consoles. The company provides processors for desktop and notebook personal computers under the AMD Ryzen, AMD Ryzen PRO, Ryzen Threadripper, Ryzen Threadripper PRO, AMD Athlon, AMD Athlon PRO, AMD FX, AMD A-Series, and AMD PRO A-Series processors brands; discrete GPUs for desktop and notebook PCs under the AMD Radeon graphics, AMD Embedded Radeon graphics brands; and professional graphics products under the AMD Radeon Pro and AMD FirePro graphics brands. It also offers Radeon Instinct, Radeon PRO V-series, and AMD Instinct accelerators for servers; chipsets under the AMD trademark; microprocessors for servers under the AMD EPYC; embedded processor solutions under the AMD Athlon, AMD Geode, AMD Ryzen, AMD EPYC, AMD R-Series, and G-Series processors brands; and customer-specific solutions based on AMD CPU, GPU, and multi-media technologies, as well as semi-custom SoC products. It serves original equipment manufacturers, public cloud service providers, original design manufacturers, system integrators, independent distributors, online retailers, and add-in-board manufacturers through its direct sales force, independent distributors, and sales representatives. The company was incorporated in 1969 and is headquartered in Santa Clara, California.

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