Another analyst is casting doubt on Advanced Micro Devices Inc.’s growth potential in graphics processing units, leading to the latest downgrade of the semiconductor stock.

AMD stock (NASDAQ:AMD) has seen a meaningful sell-off over the past week, declining by about 11% over the last five trading days..

Advanced Micro Devices (NASDAQ: AMD), also known as AMD, has been a surprisingly underperforming tech stock over the past year. In 2024, it declined by 18% even despite its promising growth opportunities as a top artificial intelligence (AI) chip maker.

Analysts from Wolfe Research, Goldman Sachs, and HSBC downgrade AMD, citing weak AI chip demand and rising competition. Could the MI350 chip spark a turnaround?

The past three years have been forgettable for Advanced Micro Devices (NASDAQ: AMD) investors. Shares of the chipmaker have declined 5% during this period, while the PHLX Semiconductor Sector index has recorded impressive gains of 36%.