Advanced Micro Devices Inc (NASDAQ:AMD) shares are trading lower after Morgan Stanley analyst Joseph Moore downgraded the stock from Overweight to Equal-Weight.
The analyst noted AMD’s high valuations, highlighting the impact of Blackwell’s launch on Nvidia Corp’s (NASDAQ:NVDA) competitors. AMD appears costly compared to other large-cap AI companies like Nvidia and Broadcom Inc (NASDAQ:AVGO).
Despite this, the analyst believes AMD’s product lineup will continue to gain market share in the client and server CPU markets.
Last week, TF International Securities analyst Ming-Chi Kuo indicated a lack of progress regarding AMD’s plans to tap Samsung Electronics Co to develop 3-nanometer chip processing technology.
The analyst said it would benefit AMD more from investing in Taiwan Semiconductor Manufacturing Co’s (NYSE:TSM) 2-nm products. According to the analyst, AMD and Samsung are currently discussing the use of 5-nm technology for AMD’s AI chip MI400 series.
AMD stock gained over 26% in the last 12 months. Investors can gain exposure to the stock via Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) and SPDR S&P 500 (NYSE:SPY).
Price Action: AMD shares traded lower by 3.81% at $161.48 at the last check on Monday.
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