The Hidden Headwinds for AMD: Why Truist Just Lowered Its Price Target

Truist recently lowered the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $111 from $130 and kept a Hold rating on the shares. AMD operates as a semiconductor manufacturer. In an investor note, the analyst noted that the company's Q1 result was good overall, but the outlook included several complicating factors like a reduction in Q2-Q3 Datacenter Accelerator revenue from exiting the China market and an inventory write-down in Q2.

Truist added that it lacked conviction in Advanced Micro Devices, Inc. (NASDAQ:AMD)'s ability to ramp MI350, MI400, and beyond, in a way that would be truly competitive.

Latest reports indicate that the semi firm has inked a multi-year, $10 billion investment partnership with HUMAIN, a new artificial intelligence enterprise launched in Saudi Arabia. The companies plan to deploy 500 megawatts of AI compute capacity in Saudi Arabia over the next five years. HUMAIN has been busy courting major US tech companies. Earlier, it had announced an investment plan of more than $5 billion with Amazon Web Services.

While we acknowledge the potential of AMD, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 33 Most Important AI Companies You Should Pay Attention To and 30 Best AI Stocks to Buy According to Billionaires

Disclosure: None.