The article discusses AMD’s stock downgrade by Bernstein analyst Stacy Rasgon, citing concerns about low demand for AI chips from Amazon Web Services (AWS) customers in 2024. Rasgon believes that AWS, a major customer for AMD’s AI chips, may experience a slowdown in demand from its customers in 2024, leading to reduced orders for AMD’s chips. This could impact AMD’s revenue and earnings growth. The downgrade reflects Rasgon’s view that the AI chip market may face a temporary slowdown in 2024 before resuming growth in 2025 and beyond. However, the analyst maintains a positive long-term outlook on AMD’s AI business, considering the company’s strong position in the market and the growing demand for AI chips across various industries.
Source: https://www.businessinsider.com/amd-downgraded-low-demand-ai-chips-aws-customers-2024-12