AMD Stock Plummets 24% in Four Days, Trading Volume Ranks 12th Amid AI Concerns

On April 8, 2025, Advanced Micro Devices (AMD) experienced a significant decline, with its stock price dropping by 6.49% over four consecutive days, resulting in a total decrease of 24.04%. The company's trading volume reached 57.33 billion, making it the 12th highest in the market that day.

KeyBanc Capital Markets senior research analyst John Vinh downgraded AMD's rating to Sector Weight from Overweight, citing concerns about the company's artificial intelligence (AI) business in China. Vinh highlighted the intense competition from rivals like Intel and the uncertainty surrounding AMD's AI initiatives in the region.

Despite the challenges, analysts project that AMD's AI GPU revenue could reach between $7 billion and $9 billion in 2025, underscoring the company's growing presence in the AI sector. This projection comes amidst fierce competition and the need for AMD to adapt to export restrictions in China.

KeyBanc has also increased its revenue and EPS projections for AMD based on stronger demand for the MI308 and personal computers, which have seen a surge in orders. However, the firm's downgrade reflects concerns about pressure on gross margins and rising competition from Intel.

AMD's AI growth has been notable, with record data center revenue and the introduction of new products like the MI350X GPU. These advancements highlight the company's efforts to maintain its competitive edge in the semiconductor sector.