AMD Stock Drops After KeyBanc Cuts Price Target Amid Slower Growth Outlook

Advanced Micro Devices (AMD) saw its stock dip by 2% in early trading on Tuesday following a significant price target cut by KeyBanc Capital Markets. The firm revised its target for AMD shares down by 32%, from $220 to $150, although it maintained an Overweight rating on the stock. Currently trading around $117, AMD shares have fallen nearly 8% this week and 35% over the past six months.
The downgrade comes after the release of AMD’s MI325, which showed only incremental performance improvements over its MI300 predecessor, raising concerns about the company’s product innovation. KeyBanc also cited weaker growth prospects for AMD’s MI3XX series, particularly the MI308 SKU focused on the Chinese market, which may dampen short-term expectations.
In addition, KeyBanc lowered its 2025 forecast for AMD’s data center GPU revenue to $10 billion, attributing this to a higher sales share of lower-margin SKUs and sluggish growth in the Embedded segment. Despite these concerns, the firm remains cautiously optimistic about the future. KeyBanc anticipates a revival for AMD with the release of its MI355 GPU in the second half of 2025, which could drive future growth.
The analysts believe that while AI demand has slowed down, AMD could capture additional market share as it rolls out new products, expecting stronger growth metrics starting in fiscal 2026. As a result, KeyBanc still views AMD as a long-term growth stock, maintaining a positive outlook for its future prospects.