Why Is AMD Stock Trading Lower On Monday?

Advanced Micro Devices Inc 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 NVDA competitors. AMD appears costly compared to other large-cap AI companies like Nvidia and Broadcom Inc 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 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 QQQ and SPDR S&P 500 SPY.

Price Action: AMD shares traded lower by 3.81% at $161.48 at the last check on Monday.

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